A total of 13,000 Britons, including around 300 from Scotland, will have to be flown home from Turkey and a further 50,000 have been left with their holiday plans in limbo after the business went into administration.
The Brighton-based firm used budget Turkish airline Onur Air for its charter flights and one was due back into Glasgow from Bodrum around 8pm tonight but it was not clear if affected passengers would be allowed on board.
Another flight is due into Glasgow on Saturday morning from Dalaman.
The Civil Aviation Authority CAA will step into ensure that all Holidays 4 U customers due to fly home in the coming weeks are able to do so.
Some British tourists still abroad will be covered by the Government-backed Atol holiday protection scheme and will be able to complete their holidays. Customers who are still to travel are advised to contact the Civil Aviation Authority for advice on how to obtain a refund.
The collapse comes amid a turbulent time for tour operators and coincided with news that Thomas Cook's chief executive, Manny Fontenla-Novoa, had resigned after being forced to issue three profit warnings this year.
It is nearly two years since Flyglobespan, Scotland's biggest airline, collapsed, leaving 4500 passengers stranded abroad. The aviation industry has been braced for more firms going under this year as carriers struggle with rising fuel costs and falling demand.
The firms receivers, PricewaterhouseCoopers said most of Holidays 4 U's 18 employees would be made redundant.
Ian Oakley-Smith, of PricewaterhouseCoopers said: "The company has suffered because of the difficulties faced by the travel industry during 2010 and 2011, as a result of the economic downturn.
"The director has determined that the business is no longer able to trade and placed the company into administration."
It is expected that tourists already abroad will be put on alternative flights, though the CAA advised anyone abroad to check the Atol website for any changes before turning up at the airport.
The CAA said it was trying to ensure that all Atol-protected holidaymakers in Turkey would be able to stay in their accommodation until they were due to travel home.
"If customers are asked to pay again for accommodation, they should send a claim to the CAA on their return so a refund can be considered," said a CAA spokesman.
However, the estimated 50,000 customers who have booked trips were advised not to travel to the airport and to contact the CAA for advice on how to obtain a refund.
Rome flight boosts city's Italian links
By Rebecca Garrett
Direct flights to Rome are soon to take off from Glasgow Airport.
The new Jet2.com service was launched this week after research found that Rome was the place most Glaswegians would most like to visit in 2012.
Tickets prices to the Eternal City start from less than the price of an Italian meal for two – just £29.99 one way including taxes.
Steve Heapy, chief commercial officer of Jet2.com, is also confident that the new direct service will see an increase ion the number of Italian tourists flying into Glasgow.
He said: "The new route should open up more opportunities for tourists to travel from Italy to Scotland, bringing with it important investment."
Councillor Gordon Matheson, Leader of Glasgow City Council and Chair of Glasgow City Marketing Bureau, agreed.
He said: "We are certain that Glasgow's style and cultural credentials will resonate with potential visitors from Italy and we will be working closely with Jet2.com and Glasgow Airport to implement joint marketing activity."
Francois Bourienne, commercial director of Glasgow Airport, said: "The direct flight will undoubtedly prove popular with business and leisure travellers alike."
Flights will operate up to three times a week with the first flight taking off in March next year.