The ruffle has left hundreds of travellers stranded and cancelled thousands of holidays for its blokes.
British-based All Leisure Holidays has stopped trading immediately and called in administrators.
Bordering on 150 people will lose their jobs in the shutdown of the Atol-protected troop.
There are four hundred people who are currently stranded abroad, who leave be helped by the Civil Aviation Authority (CAA).
Those stranded will be competent to use their airline tickets to make their way back to the UK.
Future bookings for some 7,000 people comprise been cancelled – and the holidaymakers will be refunded for their trips.
Crumpet of Atol at the CAA, Andy Cohen, said: “We understand this will be as to news for anyone who has booked to travel with the company.
“However, the Atol programme exists for exactly this kind of situation and we are making immediate line-ups so all Atol-protected customers can claim full refunds as quickly as possible.
“So while this spot is very disappointing for the customers affected, it is also a timely reminder of the rank of remembering to check for ATOL protection when booking holidays.”
Administrators Give Thornton have stepped in to manage the bankruptcy process.
Eddie Williams from Concession Thornton said: “Whilst I am extremely pleased to have concluded a traffic of the business which safeguards the holidays and bookings for over 13,500 sightsees and passengers and preserves 200 jobs, I am very disappointed that we hold no alternative other than to close the remaining ALH operations.
“The cruise mechanics have been significantly loss-making over a number of years and the persistent cost of funding these operations by the tours operations has created valuable cash issues for the entire group, which has ultimately led to the administration of all responsibilities.”