Freedom Direct collapses
Freedom Direct collapses
Freedom Direct has collapsed. Around 200 holidaymakers were stranded overseas and a further 10,000 bookings were affected when Freedom Direct went under last Thursday.
The tour operator operated under several online brands, reports Travel Weekly. These were: freedomdirect.co.uk, freedom-direct.co.uk, snowdeals.co.uk and holidaysyoulike.co.uk.
Freedom Direct provided package holidays to Mediterranean resorts, the
Canary Islands and
Turkey. It also sold holidays to long and medium haul destinations.
Before its collapse was confirmed last Thursday, Freedom Direct had been trading without an ATOL (Air Travel Organisers' Licensing) licence for over two weeks. The Civil Aviation Authority (CAA) pulled the company's £750,000 bond on Thursday. A spokesman for the CAA said: "We understand that there are around 200 people overseas at the moment and up to 10,000
pre-bookings. What we do not know is how many are
ATOL protected and how many booked direct with airlines, for example."
Holidaymakers currently overseas should be able to finish their holiday and fly home as normal, according to the CAA. However, all
advance bookings with Freedom Direct have been cancelled. Those affected are being advised to lodge a claim with the CAA for consideration under the ATOL scheme. This should be done via atol.org.uk. Bookings made direct with airlines on credit or debit cards will not be covered by the ATOL scheme.
Anyone with confirmed scheduled flight bookings as part of a package may still be able to use them, although accommodation and transfers may not be available. Holidaymakers who have booked with Freedom Direct on a
flight only basis should be able to travel as normal but are advised to contact their airline.
Appointed provisional liquidators of Freedom Direct, RMT said that "the company's financial position is still being reviewed". It is believed that Freedom Direct's chief executive is trying to sell his house to repay a £400,000 loan he took out with the company.
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