Malvern Group, the owner of Super Break, LateRooms and Malvern Travel Technology Ltd, has appointed KPMG as joint administrator for the businesses as the travel companies came under significant cash flow pressure, the audit firm said on Friday.
"However, with the cash position of the company deteriorating rapidly, this process was unfortunately unsuccessful, prompting the directors to take the hard decision to appoint the administrators", said Tracey Pye, joint administrator.
The Manchester-based companies, which had 253 employees in Manchester and NY, ceased operations on Thursday.
But vouchers and tickets for entertainment, attractions or the Incredible North Iceland Charter were no longer valid, it said.
However, The Association of British Travel Agents (ABTA) has said that most travellers will be covered by financial protection.
"This is equally hard for all our suppliers, partners and customers who will be impacted by this news", he said.
One social media tweeted that Crowne Plaza in King's Cross in London was asking Super Break customers to pay again or leave the hotel.
"LateRooms.com acted as an agent on behalf of your accommodation supplier, therefore we anticipate that your reservation is secure", said the company.
Malvern said that package holiday bookings through Super Break will be protected by ABTA and that customers with flight-inclusive bookings will be protected by the Civil Aviation Authority's (CAA) Atol scheme.
"These customers will either be entitled to a refund or, if they've booked through another travel company, they should contact them to discuss options which may include continuing with their booking, re-booking or alternative arrangements", it said. We want to reassure customers who have a Super Break booking with us that we will take care of them.
Holiday booking site Laterooms.com collapsed on Thursday..
"We continue to invite offers for the business, and would urge any interested parties to make their interest known as soon as possible". Cox & Kings, which owns 49 per cent stake in the Malvern Group, did not comment on the development.
Around 250 employees work for the travel company.
It said loan defaults by Cox & King resulted in withdrawal of funding for the Malvern Group and eventual closure of its business units. The company made a pretax loss of £2.3m as revenues fell 10% to £90m in its most recent financial filing the year to the end of March 2018.