Andy Cohen, Head of ATOL, said: “We understand this will be concerning news for anyone who has booked to travel with the company or has had their booking cancelled.
“It is a sad day for the industry when a long-established business like Fleetway ceases trading.
“However, the ATOL scheme exists for exactly this kind of situation and we are making arrangements so all ATOL protected customers may make a claim.”
The holiday firm had offices in London and Sheffield with 85 staff.
Fleetway Travel: Tour operator goes into administration putting holidays in jeopardy
Fleetway Travel: There are approximately 6,500 affected ATOL-protected bookings
Staff were told about the news in a video call.
Fleetway Travel also traded as Exclusive Luxury Breaks, Explorer’s Collection, Late Bargains, Luxury Holiday Collection, Phone & Fly, Sail Away, Silversurfers Holidays and Travelsmart.
The company said that any holidays on or before September 1 will now be cancelled with no new bookings being accepted.
Customers have been told that they will receive Refund Credit Notes in cash.
Flights: Expert reveals real risk of catching coronavirus on a plane [INSIGHT]
Holiday WARNING: Britons asked to check passports NOW ahead of Brexit [UPDATE]
TUI vows to cover coronavirus-related costs [ANALYSIS]
Any holiday deposits or payments from live bookings will be refunded in full.
But the company has recommended customers contact their travel insurer.
In a statement the firm said: “We would like to say a huge thank you to all of our wonderful agent partners.
“While the Funway journey is coming to a close, we hope all of our partners emerge from this crisis and enjoy a most prosperous future.”
Fleetway Travel: The travel and tourism sectors have been hit particularly hard
The travel and tourism sectors have been hit particularly hard by the coronavirus pandemic.
Airlines and holiday companies have had to cut staff to weather the financial impact of the coronavirus.
On July 4, the UK government changed its travel advice.
The government released a list of countries that Britons can visit without having to face quarantine rules on their return.
Quarantine exemption list
The Foreign and Commonwealth Office website says: “We continue to advise against non-essential international travel, except to countries and territories listed.”
It continues: “We are monitoring the international situation very closely and keeping this advice under constant review so that it reflects our latest assessment of risks to British people.
“We take a range of factors into account.
“For coronavirus, this includes the incidence rate and the resilience of healthcare provision in each country.”