Around 1,200 British holidaymakers have been left stranded in uncertainty, mostly in Spain, after travel company Sun4U announced that it had collapsed.

The company said it had ceased trading at 21:00 on Wednesday and that all those affected by the collapse should contact claim handlers ABTA.

According to ABTA, customers who have Air Travel Operators' Licensing packages will be able to take their holidays as usual without any disruption.

Passengers have been advised to contact the Civil Aviation Authority, who will handle flights home for those who are already abroad. The CAA also said that holiday makers may have to pay for the cost of accommodation again, but that those with ATOL protection could claim the money back if the original payment was made by credit or debit card.

Those who have yet to take their holidays with other tour operators named on their invoice are advised to contact those operators for information on whether their booking is still valid.

The collapse of Sun4U comes just weeks after another travel company, Goldtrail, collapsed, again leaving many holidaymakers stranded.