The Competition & Markers Authority (CMA) has paused legal action against Teletext Holidays and Alpharooms.com after the companies entered into voluntary liquidation.

The government watchdog launched legal action against the travel agents in October, arguing there had been inadequate progress on refunds to package holiday customers.

In May, the government body announced that Truly Holdings, the company that operates Teletext Holidays, and its sister company, the travel operator Alpharooms.com, had signed undertakings committing to refund package holiday customers for holidays cancelled during the pandemic.

These undertakings had not been met.

A statement explained: “The CMA considers that it is important to continue with its claim for a declaration in order to provide further certainty to people still waiting for refunds for cancelled package holidays.

“A declaration from the Court may also make it easier for people to obtain refunds in future if their package holiday is cancelled by other providers due to the Covid-19 pandemic and will emphasise to businesses in the sector the importance of complying with their refund obligations.”

The court has ordered that the CMA’s claim for a declaration shall be listed for a hearing on the first open date after January 11th.