Sun4U goes bust

Birmingham-based travel company, Sun4U, collapsed last week leaving around 1,200 holiday makers stranded abroad. The firm, which specialised in holidays to the Spanish mainland and to the island of Majorca, had been operating for six years and had an annual turnover of around £20 million.

It is believed that the volcanic ash crisis earlier this year plus the collapse last month of Goldtrail, which provided flights for Sun4U, heralded the demise of the company.

It has now entered administration and, according to Andrew Burnham of the chartered accountants MacIntyre Hudson, many other small firms are liable to follow suit in the next couple of years due to cash shortages.

Most of Sun4U’s customers are in Spain and many of these will be covered by the ATOL protection. Those who used Sun4U for accommodation-only or flight-only deals will not be so lucky although their credit or debit card providers may be able to help.

Even those with ATOL protection, however, may find that they have to pay to stay in their hotels and then reclaim the amount paid from the CAA. This practice was widely reported following the collapse of Goldtrail, with hotels attempting to make sure that they did not suffer financial losses because of the failure of the company.

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