A Blackburn holiday firm has ceased trading after only managing to sell six seats on a plane it chartered to the Canary Islands.

PA Travel, based on Glenfield Business Park, Blackburn, was declared insolvent last week.

A meeting of creditors will take place on Friday, when a decision will be taken on whether to place the company, which operated as a travel agent and tour operator, into liquidation.

In previous years, the company also used to organise match day travel for Blackburn Rovers fans, including European trips.

The Association of British Travel Agents (ABTA) confirmed the company, which employs 18, had ceased trading but said pre-booked customers would still be able to go on holiday and would be contacted by their tour operator.

Customers who had booked with PA Travel's own tour operation, which made up a small part of its turnover, will be refunded by the Civil Aviation Authority, ABTA said.

Sean Tipton, a spokesman for ABTA, said: "The company had around 700 forward bookings, which is not enough for a business of that size and that is the main reason they went out of business.

"The company also had a small tour operator business and had organised a flight to the Canary Islands on a plane with 237 seats, but only managed to sell six of those.

"The plane would have needed to be 80 per cent full at least for it to be worthwhile.

"We have asked PA Travel to give us a list of all their customers, then we can send the details to the tour operator, who can then contact them directly."

A spokesman for insolvency firm, Bowers and Co, said: "The company has ceased taking bookings but we are hoping to sell the business as a going concern as soon as possible.

"If the business is sold as a going concern, we hope all the staff will be retained but I cannot make any guarantees."

He said he was "reasonably confident" the business would be sold.

PA Travel's last accounts, filed with Companies House, made up to June 30, 2004, show it had increased turnover and profit on the previous year.

The company, which specialised in providing low-cost package holidays, received plaudits for the way it coped in the aftermath of the September 11 terrorist attacks in America that dealt a huge blow to the travel industry. It held the Investors in People award and in 2002 became only the 20th travel agency in Britain to win an ABTA gold training award.

Directors Paul Astley and Maureen Whittaker could not be contacted for comment.