However he said the switchover between the two regimes, which had been due to go through on April 1, was delayed due to legal issues, meaning the company was left to trade under heavy restrictions.

Speaking to The Journal at the firm’s Gosforth headquarters as the company’s sign was removed from outside the building, he criticised the lack of clarity in the travel industry among its governing bodies.

He said: “The industry is in complete turmoil at the moment. We do feel hard done by and the industry is in complete disarray. It’s a complete minefield for travel agents to know what the best way to do things is.”

He also spoke of his sadness at what had happened to the once-successful firm.

“There were a lot of tears yesterday. Many of our staff had been with us for many years. They were as upset as I am that the business was coming to an end. It was a very difficult day, but I have had nothing but support from them.”

Meanwhile John Hays, who runs rival firm, Sunderland-based Hays Travel, hinted that he could be interested in some of Freedom’s assets. He said: “We would be interested in parts of the business possibly, although I’m out of the country at the moment.” Customers who had booked holidays spoke of their uncertainty yesterday.

Leanne Cradock, of Southampton, who had booked a holiday to Menorca, said: “I feel really agitated at the moment. It’s my first holiday since I was 18, I’m 27 now. It’s also my first holiday with my daughter.”

Andrew Meredith, 47, of Essex is worried that his 10-day trip to Turkey with girlfriend Theresa would be ruined after paying £367 to Freedom Direct for his hotel accommodation.

“I am feeling desperate about it, really down.”

Customers who have booked a package holiday with the company are bonded under ATOL No. 9740 and are advised to contact the CAA on (020) 7453-6350.

Customers who have booked a flight, accommodation or a package holiday with any ATOL bonded company other than 9740 are advised to contact ABTA on 01243 621500.