Holiday firm goes bust affecting 110,000 holidaymakers

Holiday booking company Lowcost Travelgroup has gone into administration following the Brexit vote.

Uncertainty around the EU referendum and the fall in the strength of the pound have been blamed for the company going into administration on 15 July, with the loss of 120 jobs in the UK.

Most of the company's 451 staff were based in Poland, reports the BBC.

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The company has 27,000 holidaymakers in resorts and 110,000 more with bookings.

Customers who are already away have been assured they will be able to fly home.

The 110,000 with future bookings could face problems, however. Customers' flight bookings for future holidays should be valid in most cases but hotels will need to be paid for - meaning thousands now won't be able to afford the holiday they booked and thought was already paid for.

Those who are not covered by travel insurance will either have to pay for their holiday twice, pay for new accommodation, or simply cancel the trip.

A statement explained: "Unfortunately, as regards customers who have not travelled as yet a small number will have problems as regards their flights not having been paid for and many will have problems as regards their hotel rooms not having been paid for."

According to the Telegraph, LowCost Holidays is not covered by Air Travel Organisers' Licensing (ATOL), a scheme which protects people who have purchased package holidays, meaning customers are at risk of losing all their money.

A statement on the company website read: "We deeply regret to announce that the lowcosttravelgroup ("LCTG") ceased to trade on 15 July 2016, following exhaustive attempts by the group's directors to rescue the group, which has been hampered by the recent and ongoing turbulent financial environment.

"On behalf of LCTG, the directors wish to profusely apologise for the inconvenience and distress that this will cause to our customers."

The Manchester Evening News repots that Smith & Williamson LLP and CMB Partners UK Ltd will be overseeing the administration process.

The site says claims must be made via email to lowcosttravelswiss@smith.williamson.co.uk