A HOLIDAY company which told thousands of people they had won a free trip which they never received has been wound up in the High Court in London.

People from East Lancashire were among the 65,000 who responded to the claims amounting to almost £3.5million being paid to the bogus firm, Holidays Direct, the court heard.

The High Court heard that investigations had been carried out by the Department of Trade and Industry against Holidays Direct Ltd and Incentive Marketing Ltd, which trade from an address in Cheshire.

Making the application "in the public interest" Mr Nicholas Caddick, for the DTI, said of the 65,000 who responded, only 25 to 30 actually received holidays and 171 holidays were going out.

Describing the operation as "highly improper and unsatisfactory" Mr Caddick added that efforts to trace officials of the companies had been unsuccessful with the registered people claiming they had nothing to do with the running of the company and that the winding up of the firm was in the public's interest.

Speaking after the case Melanie Johnson MP, minister for competition, consumers and markets, said: "The judgement will be some comfort to the many people who have lost money to know that this firm has been put out of business once and for all."

In July 66-year-old John Wilson, of Hareclough Close, Blackburn, contacted the Lancashire Evening Telegraph after he received a letter from Holidays Direct saying he had won a week in Spain.

Mr Wilson, a retired funeral director, posted a cheque for £88.50 covering administration of a holiday for six people which was cashed a week later although he never got his holiday.