The future of On Holiday Group was in question tonight after a message appeared on its site saying that the company had ceased trading.

The notice, which appeared only briefly, was replaced with one about a technical error minutes afterwards.

It said: “On Holiday Group has ceased trading.”

It also contained contact details for agents and wholesalers.

The message appeared as Spanish press reported that Hotelbeds and Jumbo Tours were in conversation with On Holiday Group about taking over the company’s forward bookings.

Reports claimed that On Holiday Group, which incorporates accommodation-only supplier Holiday Brokers, is struggling after paying a £4.5 million VAT bill to Her Majesty’s Revenue and Customs.

It is thought that the directors are trying to reach a rescue plan with various bed banks to take over forward bookings and to protect customers in resort.

This week’s Medhotels victory in the Supreme Court over HMRC in relation to a £7 million VAT assessment may have came too late to save the troubled On Holiday Group, despite the fact that any firm having made payments could now claim that money back.

All directors of On Holiday Group were unavailable for comment.