All Leisure Group, the operator of Voyages of Discovery and Swan Hellenic cruise brands has ceased trading.
Both cruise lines cancelled New Year cruises, leaving 400 cruise passengers stranded overseas. Today’s news also affects some 7,000 future bookings.
Both firms are Atol protected and all holidaymakers will received refunds.
Travellers stuck abroad will be helped to return home with help from the Civil Aviation Authority.
Andy Cohen, a spokesman for the Civil Aviation Authority, said: “We understand this will be concerning news for anyone who has booked to travel with the company. However, the ATOL scheme exists for exactly this kind of situation and we are making immediate arrangements so all ATOL protected customers can claim full refunds as quickly as possible.
“We are also arranging for people currently overseas to get back home to the UK at no extra cost – meaning no-one will be left stranded abroad.
“So while this situation is very disappointing for the customers affected, it is also a timely reminder of the importance of remembering to check for ATOL protection when booking holidays. By making sure you receive an ATOL certificate when you book, you have peace of mind you will not lose your money or have to make your own way home – even if your travel company stops trading.”