Sun4U, a Birmingham-based travel company, announced yesterday that it had ceased trading. The firm, which specialised in providing holidays in Mallorca and on the Spanish coast, has around 1,200 customers currently holidaying abroad. A statement has been issued advising all those who have booked trips through Sun4U to contact Abta to find out about eligibility for refunds or to arrange alternative travel plans.

Although it is currently not clear how the holidaymakers stranded abroad are going to make it home, an Abta spokesman has confirmed that most are currently in Spain. Abta added that those who have booked Atol protected packages will be able to continue enjoying their holiday and will be brought home when it is over.

The Civil Aviation Authority confirmed that Atol protected customers would be brought home safely but warned that those who had used Sun4U simply to book airline tickets may have to arrange alternative ways of getting home themselves. The CAA advised those who had booked with separate operators to get in contact with them and confirm whether the original holiday arrangements still stand.

It is believed that Sun4U was hit hard financially by the volcanic ash cloud which grounded aircraft across Europe earlier in the year. It is also understood that call-centre staff working for the company were informed of its intention to cease trading on Thursday morning.

Sun4U’s collapse follows the demise of Goldtrail Travel. Specialising in package deals to Turkey and Greece, Goldtrail left 16,000 holidaymakers stranded and around 50,000 needing to make alternative plans.