More than 2,000 holidaymakers have been hit by the collapse of Dream Holidays in the United Kingdom, with the Greece and Cyprus specialist ceasing trading earlier.

Barnet, Herts-based Dreams had been trading as ‘Dreams and Holidays’, ‘Dreams and Travel’ and ‘My Dream Holidays’.

The Civil Aviation Authority (CAA) confirmed it would refund passengers under the company’s ATOL.

However, those scheduled to take holidays booked through the tour operator would be cancelled.

Dream Holidays had a bond for £265,000 with the ATOL scheme.

A further 525 customers are thought to be abroad at present, with the CAA confirming they would be able to complete their holidays and fly home as planned.

Dream Holidays was launched just over a year ago by former Libra Holidays boss Akis Kypriano.

In a statement he said: “I wish to express my sincere apologies for all the inconvenience this will cause to all the travelling public that have booked a holiday with us, to those holidaymakers who are currently in resort, as well as all our retail and overseas agents and hoteliers who have supported us over the last two years.”