A message to Luxtripper clients has said the firm is “heartbroken” at not being able to provide the care to customers it was built on “at this time”.
The Luxtripper website has been updated to confirm that the company has ceased to trade as an Atol holder.
The Civil Aviation Authority confirmed the failure of the London-based online company the day after it suspended operations after being unable to secure additional funding.
The Luxtripper website now says: “Luxtripper is going through a financial restructuring, which means that we have ceased to trade as an Atol holder.
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“We have engaged Resolve Advisory Ltd, a firm of restructuring specialists, to run this process, which will include exploring rapid options to seek a sale of the business via an AMA (accelerated merger and acquisition) process.
“This process will be completed within the coming days, where a buyer will hopefully be found to ensure continuation of the business.
“In the interim, we are working with the Civil Aviation Authority (CAA) to support customers with an Atol-protected booking whether they are currently abroad or have future bookings.”
Luxtripper had drafted in ReSolve Advisory to seek rescue finance or a sale of the business, with potential investors or buyers given a deadline of today (Monday) for offers to be submitted.
A Luxtripper customer group set up on Facebook to enable clients to share their experiences dealing with the company attracted almost 360 members.
A number who contacted Travel Weekly, including those who had booked honeymoons to The Maldives, complained that they had been unable to contact the company prior to the CAA stepping in.
A message sent to clients by the firm late on Friday said: “As you may be aware, Luxtripper is going through a financial restructuring, and we are writing to let you know that we have today ceased to trade as an Atol holder.
“The UK Civil Aviation Authority (CAA) oversees the Atol financial protection system for consumers who buy air inclusive trips from Air Travel Organiser’s License (Atol) holders.
“The UK CAA will be publishing further information on the Atol.org website including how to make a claim for your Atol protected trip.
“The care of our customers is what Luxtripper was built on and we are heartbroken that we are in a position where we cannot deliver that at this time.
“However, having been working closely with those at the CAA over the last 48 hours, we know that they will do everything they can to support you.
“The CAA have been provided with your contact information and details of your trip, as well as those of our suppliers.
“They will be prioritising customers on holiday or due to travel imminently, but please be assured that all necessary information has been communicated and they will be in touch in due course.
“We will continue to support the CAA with whatever they might need during this time.”
The note added that “the CAA is taking over all flight-inclusive packages only.
“If your trip is non-licensable, which includes hotel-only bookings or for customers who are residents outside of the UK, you’ll need to contact your travel insurance provider, or credit card company to start the process of a chargeback.
“We can support you with any information you might need to support. You can use this email as evidence.”
The CAA notice at Atol.org said: “We are currently collating information from the company and will update this page further as soon as possible.”
Luxtripper held an Atol licence for 4,437 passengers but it remains unclear how many customers are overseas and how many hold forward bookings.
The company reported in 2021 that it had attracted £1.2 million from an investment round including un-named former travel executives and high net-worth individuals. This brought total investment at the time to £3.1 million since the company was formed in 2015.
Founder and chief executive Nena Chaletzos said on Thursday: “We are hugely saddened that despite our best efforts, to date, we were unable to secure adequate funding to help the business during this challenging time. However, we remain confident that with the help of ReSolve, we can achieve a positive solution.”