A successful Newcastle based holiday company has had to close its doors after 12 years in the industry. With a seventy million pound turnover, the collapse comes as a surprise to many especially the thousands who had booked holidays with the firm.
While customers who had booked directly with the ATOL registered business should be able to claim refunds, this offers little relief for people like Mr and Mrs Watts who booked their holiday in Turkey through a Teletext third party.
Mr and Mrs Watts were looking forward to their fortnight’s holiday in the Mediterranean. Having paid out almost eight hundred pounds for their holiday in the sun, the couple are left in doubt whether or not they will be netitled to a refund.
According to the article “Freedom Direct collapse ruins couple’s holiday” not booking the holiday directly with the company could put paid to any chance of a refund. Freedom Direct, prior to its closure, was ATOL registered and able to refund customers the costs of their trips. Unfortunately for the Watts, having booked through a Teletext company, could find there is no chance of seeing their money again.
Freedom Direct owed its sudden closure, it is claimed, to new auditors being unable to complete accounts within the time constraints that are set out by ATOL. The company’s collapse last week saw the laying off of a hundred and nine employees from its Newcastle offices as well as the cancellation of thousands of holidays. In an effort to minimise the upset as much as possible, accountants are looking into ways of selling tours booked through Freedom on to other travel companies. Through this it is anticipated that customers will be able to continue with their holiday bookings as originally planned.
What about the Watt’s holiday? Did the couple have the foresight to take out travel insurance? It is hoped they will be able to gain a refund from their credit card company although the couple are still to receive confirmation of this possibility.
Anybody affected by the collapse of Freedom Direct should call the Civil Aviation Authority on 0207 279311.