The company moved from Stonehouse in 2006

A statement on Travelscope Holidays' website said all trading activities had been suspended and no further holiday bookings were being taken.

The Gloucester firm blamed a cancelled cruise and ensuing litigation.

The Association of British Travel Agents (Abta) said claim forms would be sent out and full refunds offered.

"We will have a claims handling number in place from Monday," a spokeswoman said.

"Abta has ensured that those passengers already on board the cruise ship, MV Van Gogh, currently due to arrive at Falmouth on 4 January, will be able to continue with their holidays as they are covered by Abta's financial protection scheme," she added.

Ensuing litigation

The company started in 1992. It moved to Brockworth after spending many years based in Stonehouse.

Managing director Richard Ford said there had been some interruption to business because of the move.

He said a cancelled cruise and ensuing litigation saw the ship's owner put a charge on Travelscope's building on the Gloucester Business Park.

"I'm very, very sorry. I had tried hard to speak to the administrators before about continuing the company into the New Year but we were advised this wasn't an option," he said.

In its last accounts filed with Companies House, it reported a turnover of more than �75m in 2006, with a pre-tax loss of almost �2m. It owed some �20m.

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The administrators are Menzies Corporate Restructuring.

A spokeswoman said: "Travelscope Holidays Limited was established 15 years ago and provides worldwide escorted tours.

"The most recent annual turnover for the business was �80m and it employs 270 staff who are predominantly based at the company's Gloucester offices.

"The company has been experiencing recent cash flow difficulties and whilst it endeavours to seek options for refinancing, it has been placed into administration in order to best protect the company's customers and creditors."

One of Travelscope's customers, Wendy Owen from Hucclecote, was booked to go to Bavaria for the New Year.

She went into the office on Wednesday with some insurance documents and said there was no hint of any problems.

"I was very shocked. The first I heard about it was on the radio."

Another customer - Ernest Roberts, of Deal - said he only found out via a friend. He said he had spoken to the liquidators who said they would ring him back, but haven't.

"My wife, myself and two friends were going on the 23rd to Germany and we only found out at 5 o'clock this afternoon - the 21st," said Mr Roberts.

"It is a very disappointing Christmas."

The company recently made headlines when shoppers on one of its Christmas trips to France were taken to Belgium after a sat-nav blunder diverted their coach off course.

In 2004, Travelscope Holidays was named Business of the Year in the annual Gloucestershire Business Awards.