Freedom Direct Holidays has ceased trading after it failed to renew its Air travel Organisers Licence.
The Newcastle-based company, which also traded as freedomdirect.co.uk and hotsunholidays.co.uk, offered holiday packages to the Mediterranean, the Canary Islands and Turkey.
It has been estimated by the Civil Aviation Authority that 200 people are currently abroad on one of the company’s holidays, while a further 10,000 people have advance travel bookings for this year.
Issuing a statement on the company’s website, Freedom Direct’s chief executive Martin Jones said: "We would like to apologise for any inconvenience caused to our customers and to thank the many people who have booked holidays with us over the last 12 years."
As well as selling package holidays, Freedom Direct sold flights, accommodation and packages on behalf of airlines, accommodation suppliers and tour operators.
Last year, the collapse of XL, which was Britain’s third-largest package holiday group, left tens of thousands of Brits stranded abroad.
Stranded passengers can use Skyscanner to find alternative flights.