The operator’s parent company FTI Group said FTI Touristik is directly affected but admitted insolvency filings will follow for its other brands.
FTI Group confirmed luxury brand Windrose will continue operating. Other FTI brands that could be affected by the developments include trade-only bed bank Youtravel.com.
In April, FTI agreed a €125 million investment from an investor consortium led by Certares but the company said booking levels since then had “fallen well short of expectations”.
The group said: “After a lengthy and complex investor process, the entry of a consortium of investors was announced in April 2024.
“Since then, however, booking figures have fallen well short of expectations despite the positive news. In addition, numerous suppliers have insisted on advance payment.
“As a result, there was an increased need for liquidity which could no longer be bridged until the closing of the investor process.
“The filing for insolvency has therefore become necessary for legal reasons.”
FTI said supporting customers affected by the consequences of the insolvency was “now a top priority”.
It added a support website had been created at www.fti-group.com/en/insolvency to help customers overseas as well as a support hotline.
The group added: “We are currently working hard to ensure that trips that have already started can be completed as planned.
“Trips that have not yet begun will probably no longer be possible or only partially possible from Tuesday 4 June.
“In cooperation with the [provisional] insolvency administrator yet to be appointed, a concept for the ongoing information of affected travellers and the operational implementation of the necessary measures will be developed in the coming days.”
A Youtravel spokesperson added: "As for Youtravel.com, we are a separate entity and we are actively working on determining the future course of action without the support of FTI Touristik.
Commenting on the news, Julia Lo Bue-Said, The Advantage Travel Partnership chief, said: “We’re shocked to see the news about FTI, one of Europe’s largest tour operators, failing after Thomas Cook collapsed in September 2019.
"It will be a difficult day for all affected staff and customers. No doubt it will also have a significant impact not just on the German holiday market but on hoteliers operating in key German source markets such as Spain.”
"This is an incredibly challenging time for our colleagues at FTI, and we are committed to working diligently in the days ahead to support all our partners."
Youtravel has cancelled the next seven days of arrivals "due to the difficult situations" its destination management companies were facing.
