Travel Giants Go Bust Owing Millions

Travel giants Teletext Holidays and Alpharooms have entered liquidation in a move that could affect tens of thousands of holidaymakers that are still awaiting refunds from the very beginning of the Covid pandemic. Truly Holdings is the company that owns both firms, and as of Friday, 7 January, it has ceased trading according to the government’s insolvency database. The move affects more than 4,000 customers.

The Travel Trust Association (TTA) has revoked the memberships of both Teletext Holiday and Alpharooms, citing financial concerns. This occurred just before the businesses moved into administration. According to sources, Robert Cundy and Bijal Shah of Edge Recovery and Insolvency Practitioners were hired by Truly Holding a week ago to manage the closure and wrapping up of the company.

The insolvency happened after the UK’s competitions watchdog singled out Truly Holdings after it failed to pay out millions in refunds for holidays that were cancelled due to Coronavirus. Entering liquidation means the company has no cash left, all remaining assets will be sold and the money used to pay people it owes money to if there is enough.

Teletext Holidays will no longer be taking new bookings, although it is understood it will honour existing holidays, while any future bookings made with Alpharooms will not be fulfilled. If you are currently on a trip with Teletext, your holiday should not be affected as the TTA has contacted all suppliers and requested that bookings remain in place.

Flights are ATOL protected, so you will still be able to make it home from your trip. If you have books with Alpharooms, your trip will no longer be valid, but you can apply for a refund, although it can take up to 12 weeks to process.

If you are still waiting for a previous refund from Teletext Holidays, the CMA is in the process of taking Truly Holdings to court for their failure to pay up. The CMA is monitoring the situation and will claw back the money owed. The Watchdog said: “We monitor the situation and seek further clarification. While these reports will concern people waiting for refunds, we will continue to take all possible action to get people the money they are owed.”