The Lowcost Travel Group online travel agent, which has its head office in Palma, closed its main office on the ParcBit Technology Park and other offices in Switzerland, Poland and the UK this afternoon.
The company’s website stated:
"We deeply regret to announce that the Lowcosttravelgroup (LCTG) ceased to trade on 15 July 2016, following exhaustive attempts by the group’s directors to rescue the group, which has been hampered by the recent and ongoing turbulent financial environment.
This notice applies to the following companies and brands:
1. Lowcosttravelgroup Ltd
2. Lowcostholidays Spain SL
3. Hoteling.com part of Lowcostholidays Spain SL
4. Lowcostbeds.com AG.
Smith & Williamson LLP, jointly with CMB Partners UK Ltd, have been appointed as administrators over the UK group entities with effect from 15 July 2016.
On behalf of LCTG, the directors wish to profusely apologise for the inconvenience and distress that this will cause to our customers."
It then goes on to advise clients what to do and ends: "LCTG is no longer trading so there is no possibility of contacting the company. If you need to process a claim against LCTG (or any of its companies or brands), please contact lowcosttravelswiss@smith.williamson.co.uk with details of your claim – contact can only be made via email."
The company was set up in the UK in 2004 and claimed to carry around two million passengers a year. Three years ago it moved its chief operating centre to Majorca.