THE DREAM of a free holiday may be over for dozens of North Yorkshire residents after controversial holidays firm Holidays Direct suffered a major blow to its prospects.

And the chance of customers recovering their administration fees, paid to pave the way for luxury holidays from the Bournemouth-based company, has reduced dramatically.

Investigations by the Department for Trade and Industry have led to the department petitioning at the High Court for a winding-up order against Incentive Marketing Limited and Holidays Direct Travel Limited.

Liz Levitt, trading standards manager at City of York Council, said: "If this order is upheld, then the company will go into receivership.

"If there is any money there, any assets will be distributed on a strict pecking order, with secured creditors first, and consumers next as unsecured creditors."

One North Yorkshire man who paid his £29.50 processing fee in the hope of a dream vacation is determined to fight on for his money.

"This is not a good sign but we will keep trying," he said.

"It looks we may never see our cash again, but who knows."

The Official Receiver has been appointed as provisional liquidator of both companies, pending the hearing of the petitions on October 24 at 10.30am.

Updated: 11:12 Tuesday, September 11, 2001