A West Midlands travel company has collapsed, prompting fears that holidaymakers from Shropshire could be stranded abroad.

Travel company, Sun4u, has collapsed leaving around 1,200 people abroad facing holiday chaos. The Birmingham-based company announced that it had ceased trading on its website. The firm’s demise will spark fears that more travel companies could meet a similar fate.

Bosses from the company were today unavailable for comment, however, it is feared some Shropshire holiday makers could be caught up in the chaos.

The firm is understood to have been a victim of the ash cloud crisis earlier this year.

According to reports, some 40 members of staff at its call centre were informed of the collapse.

A statement on the company’s website read: “Sun4U Limited has ceased trading as of 11th August 2010 at 2100hrs. For further information please contact ABTA’s claim handlers CEGA on 01243 621 500.”

It is unclear how many holidaymakers currently abroad — most of them in Spain — will be brought home.

Travel organisation Abta said those with Atol (Air Trave l Operators’ Licensing) packages should be able to continue with their holidays as planned.

A spokesman said: “There are approximately 1,200 people away at the moment and most of them are in Spain.

“Anyone who has booked a package holiday must contact the Civil Aviation Authority (CAA) or contact the supplier named on their invoice.”

The collapse of Sun4U follows the recent failure of tour operator Goldtrail Holidays.

Around 16,000 Goldtrail customers were abroad when the Greece and Turkey specialist went into administration last month.

The CAA said measures would be put in place to ensure those abroad with Atol packages can come home. But it warned those who used Sun4u as a travel agent to book flights might have trouble returning.

More information for passengers is available at www.caa.co.uk/atol