Market turbulence surrounding the EU referendum result – including the fall in the value of the pound which dissuaded many customers from travelling – was blamed.

The company also pointed to the terror threat hitting the travel industry after a series of incidents – including the latest deadly attack in Nice. Big travel sector players including easyJet, Thomas Cook saw share price falls on Friday in the wake of the outrage.

In a statement, administrators Smith & Williamson said the majority of Lowcosttravelgroup staff had been made redundant, with a total of 451 laid off including 120 at Gatwick and 264 in Krakow and the rest in Majorca and Switzerland.

The Civil Aviation Authority said the company was not part of the ATOL scheme which protects customers who have booked holidays with the firm and advised them to check the status of their booking with airlines and hotels.

Administrators for the firm said the slump in sterling had played its part in its demise as it had put off Britons – 60% of its customers – from booking holidays.

They also said that uncertainty ahead of the referendum had caused some customers to delay holiday decisions.

Lowcosttravelgroup had a turnover of around £500 million last year, administrators said.

Source: Sky News