Specialist tour operator Holiday Options has gone into administration after 16 years in business.
The ABTA member and ATOL protected company run holidays to destinations such as Croatia, Corsica, Sicily, Cape Verde, Madeira and the Azores.
According to the company no passengers had been left stranded and all forward bookings, thought to been around 1,100, would be taken over by Cambridge-based Light Blue Travel.
Light Blue Travel is in the process of writing to Holiday Options' customers and travel agents explaining the situation.
Earlier this month Plimsoll Publishing, a leading travel industry analyst, predicted that nearly 300 tour operators could collapse or be taken over in the next year.