Over 7,000 hit by Tapestry Holiday's failure

Tapestry Holidays, a holiday company specialising in trips to Turkey, Greece and Croatia has gone bust with 1,500 customers currently abroad. Another 6,000 people have booked travel with the Chiswick based property company this Summer.

Reports are blaming a slump in bookings earlier in the year as a result of the bird flu scare for causing the collapse. Turkey was one of the firms most popular destinations but when disease was found at a chicken farm near the key resorts of Bodrum and Marmaris there appear to have been a significant number of cancellations.

A statement on the firm's web site says, "Unfortunately, anyone due to travel will not be able to as all Tapestry Holidays flights departing from the UK have been cancelled. You should, however, be able to receive a full refund of the money you paid to Tapestry Holidays either through the CAA or, if you paid by credit card, from your issuer."

The Civil Aviation Authority stepped in to protect customers booked with Tapestry Holidays after the company ceased trading on 10th August.

They are currently making arrangements for customers abroad to complete their holiday and to fully refund those with forward bookings. The firm held Air Travel Organiser's License (ATOL) 3434 issued by the CAA and provided a £1.7m bond.

The CAA is currently advising Tapestry Holidays' customers who are due to travel to submit a claim form to the CAA. Forms are available on the ATOL website at www.atol.org.uk. Travellers should not go to the airport. If a customer is abroad the CAA will be making arrangements to ensure that customers on Tapestry holidays remain in their holiday accommodation and fly home as planned.

Information will be made available to representatives in resort, but if you have a query please contact the CAA helpline during office hours on +44 (0) 289 147 6130.

August 10, 2006