Abta has confirmed the collapse of Newcastle-based online retailer Freedom Direct Holidays.
 
As ttglive.com revealed this morning, the company, which was an Abta member, had started the process of going into administration after failing to secure a rescue package.
 
The 100 employees at the agency were due to be officially told about the collapse this afternoon, by chief executive Martin Jones (pictured).
 
Freedom Direct had been trading without an Atol for 16 days after failing to renew its licence at the beginning of this month.
 
This meant it was not able to take any new bookings or collect balances on existing bookings.
 
The CAA will pull the firm’s £750,000 bond, although the overall cost to the Air Travel Trust Fund that backs Atol has been estimated at £2 million.
 
The Freedom Direct website was taken down yesterday and the following message posted from Jones:

"Unfortunately, Freedom Direct Holidays Ltd has today ceased trading (as of 16 April 2009).

"Passengers who have booked a holiday with Freedom Direct Holidays Ltd are fully financially protected. Freedom Direct Ltd operated as a full member of ABTA (F5038) and ATOL 9740.

"All customers who have booked a package holiday with Freedom Direct Holidays Ltd are bonded under ATOL number 9740, and are advised to contact the CAA on the following number 020 73797311.

"All customers who have booked a flight, accommodation or a package holiday with any ATOL bonded company, with an ATOL number other than 9740, are advised to contact ABTA on 01243 621500.

"Freedom Direct Holidays traded under the following online brands: Freedomdirect.co.uk, Feedom-direct.co.uk, Snowdeals.co.uk and Holidaysyoulike.co.uk

"We would like to apologise for any inconvenience caused to our customers and to thank the many people who have booked holidays with us over the last 12 years."