Summary
When a long-standing Norfolk travel operator was forced to cease trading due to an unexpected loss of financial protection insurance, McTear Williams & Wood stepped in to support the director, employees and hundreds of customers impacted by the sudden shutdown.
This case highlights how early advice, clear communication and sector expertise help protect stakeholders when a consumer-facing travel business can no longer continue.
- Service provided: Creditors’ voluntary liquidation (CVL)
- Sector: Travel and tourism (coach holidays)
- Location: King’s Lynn, Norfolk
- Team members involved: Tony Harrison
- Turnover: £600k
The challenge
East Anglian Holidays Limited had served customers across the UK and Europe since 2012, offering coach tours, festive breaks and seasonal trips popular with local holidaymakers.
In late December 2019, the company was unable to renew its financial failure insurance policy, which is a regulatory requirement designed to protect consumers’ pre-payments. Without insurance in place, the company could not legally continue trading.
Despite the director exploring every possible alternative, including new insurance routes and financial options, the business could no longer accept bookings or fulfil upcoming tours. Several Christmas and New Year trips, including a mystery tour and a festive Luxembourg break had to be cancelled at short notice. Around 200 customers had already paid deposits or the full amount for their holiday.
Additionally, three staff members, including the director, faced immediate redundancy.
The business required urgent support to:
- Cease trading compliantly
- Inform customers and guide them on reclaiming their payments
- Support staff through redundancy
- Prepare for a formal creditors’ voluntary liquidation
- Protect the director from potential personal liability
Our approach
McTear Williams & Wood acted quickly to stabilise the situation and ensure the correct steps were taken from the outset.
1. Immediate advice and cessation of trading
We advised the director to stop trading immediately to avoid further customer exposure and comply with regulations. Clear guidance was provided on what could and could not be done after insurance protection had lapsed.
2. Customer communication and repayment guidance
Hundreds of holidaymakers required fast, accurate information. We ensured:
- Customer notifications were issued promptly.
- Instructions were provided for claiming refunds through insurers or, for card payments, via card providers.
- Clarity was given on which bookings were protected under the insurance cut-off date.
This reduced confusion and prevented misinformation from circulating locally and online.
3. Employee support
We supported the director in understanding their obligations to staff. All employees, including the director, were made redundant in line with legal requirements, with appropriate guidance issued around claims and entitlements.
4. Preparing the company for liquidation
With no viable future for the business, a creditors’ voluntary liquidation was the most appropriate route.
Our team:
- Prepared the statutory documentation
- Liaised with key creditors, including insurers and HMRC and customers, setting up a specialist team to handle the calls
- Collated the necessary financial records
- Ensured full regulatory compliance in the weeks leading up to the liquidation date
5. Media and stakeholder management
Local press reported widely on the company’s closure. McTear Williams & Wood provided clear, accurate public statements to help reassure customers that steps were being taken to ensure they could reclaim what they had paid.
The outcome
East Anglian Holidays entered a creditors’ voluntary liquidation in the New Year.
Through early intervention and structured stakeholder communication:
- Customers were informed promptly and given a clear route to recover their money.
- Card-paying customers were able to make chargeback claims.
- Staff were supported through redundancy.
- The director avoided the risk of wrongful trading or personal exposure.
- The business was wound down in an orderly, compliant and well-managed process.
This case highlights the importance of specialist support when consumer-facing businesses encounter sudden regulatory or cash flow barriers. Without the appropriate insurance in place, a travel firm must take immediate action to protect customers. Timely professional advice is essential in preventing a difficult situation from escalating.
Why choose McTear Williams & Wood?
- Expertise in managing complex, time-sensitive closures
- Clear, calm guidance for directors under pressure
- Strong experience in consumer-facing sectors where customer money is involved
- Transparent communication that protects reputations and reduces risk
- A trusted local presence across East Anglia