Lowcostholidays goes into administration

18 July 2016

The budget travel group ceased trading on Friday evening, leaving 140,000 customers who have planned future holidays (or are already abroad) in the lurch. The group has blamed Brexit for its demise as the ‘recent and ongoing turbulent financial environment’ proved too much. 

Joint administrators from Smith & Williamson and CMB Partners UK Ltd have been appointed to oversee the administration of the group’s following four companies: Lowcosttravelgroup Limited, Lowcostaviation.com Limited, Lowcostbeds.com Limited, Lowcostholidays Limited.

Finbarr O'Connell, from Smith & Williamson, said: “The group experienced significant market headwinds in the run-up to the EU referendum as holidaymakers delayed decisions. This was compounded by the Leave vote itself and the subsequent fall in value of the pound.”

Lowcostholidays is not protected by ATOL (UK Civil Aviation Authority scheme), therefore customers will be unlikely to get their money back. As the group was based in Mallorca, the holiday was registered in Spain so any customers looking to make claims, should contact the insolvency practitioners through www.lowcosttravelgroup.com for further assistance. You may also be able to make a claim through your travel insurance provider. 

Any customers on holiday at the moment should be able to use their valid airline tickets to fly home, however if there are any problems, contact the low cost travel group website as shown above.