Two questioned after travel firm collapses

FRAUD SQUAD detectives yesterday questioned two senior executives of a travel company hours after it collapsed leaving thousands of British holiday-makers stranded abroad.

Val Tjolle and Theresa McDermott, of Land Travel in Bath, Avon, were arrested at the company's offices but later released on police bail until 10 December. The firm was one of Britain's largest Continental coach tour organisers with up to 200,000 customers a year. It went into liquidation leaving at least 2,500 British holiday-makers struggling to get home. Some estimates put the figure at nearer 10,000.

Land Travel was not a member of the Association of British Travel Agents or of any other organisation that runs bond schemes to ensure that people already abroad will be brought home and those whose holidays are cancelled will be reimbursed.

Some people were stranded without warning yesterday. One French coach company, realising it was unlikely to be paid, demanded pounds 40 from each passenger before taking them to a cross-Channel ferry. In another case Land Travel couriers got off a coach in France as soon as they heard the company had gone into liquidation. About 30 people were turned out of a hotel in Austria.

Emergency measures have been taken by Grant Thornton, the accountancy firm appointed as liquidators, to try to get people home but help cannot be guaranteed. Robert Buller, senior insolvency manager, said: 'All coaches overseas have been told to turn back and we are doing what we can.'

About 30,000 people were due to take coach tours booked through Land Travel next month, mostly to France and Austria. Neither they nor thousands more scheduled to travel later in the year will get any money back.

Among them is Pamela Gayle, a teacher from Stockwell, south London, who planned to take a party of 42 adults and children to Paris and Euro Disney.

She said: 'It's disgusting. They were taking money right up until the last minute and now my group has lost more than pounds 4,400. Some of these children, including my son Darius, were going abroad for the first time. I had no idea the company was not bonded.'

An east London charity planning a visit to Euro Disney for 20 children lost a pounds 1,300 deposit. The Rev David Everett, the Dockland Settlement administrator, said: 'We are all very upset and angry. These are children from the inner city who would not otherwise get a holiday.'

The collapse has come as the Government is moving to comply with EC regulations and ensure that all holiday-makers are protected by bonds. About 10 per cent of package tours are not covered. From 1 January a levy will be imposed on unbonded holidays to build up a repayment fund.

Evidence emerged yesterday that Land Travel had been in financial difficulties for some time. Accounts showed the company owed more than pounds 2.1m in March 1990. BBC television's Travel Show has investigated it and in recent months a growing number of people had holidays cancelled.

The liquidators moved into the company's Bath offices yesterday morning and 140 full-time and 200 part-time staff lost their jobs.

Mr Tjolle, 47, chairman and chief executive, and Ms McDermott, 35, company secretary, were questioned by detectives investigating fraud allegations.