Travelzest has failed to secure a management buy-out of its Canadian businesses.
The travel group, which includes online retailer itravel2000 and Cruise Professionals, now aims to renegotiate the terms for existing bank loans.
It said that “the current terms are unsustainable and are negatively impacting the profitability of the company”.
A statement issued this morning said: “The independent directors, comprising Nigel Jenkins, Mark Molyneux and Richard Hall, have not been able to reach agreement with the management team as to a price that properly reflects the value of the Canadian businesses and assets.
The board of Travelzest will continue to focus on growing the business to achieve value for shareholders.”
Chief executive Jonathan Carroll and chief financial officer Adrian Cobbold with private equity backers were negotiating to buy the Canadian arm
Jenkins, non-executive chairman, said: "Despite considerable efforts, we have been unable to reach an agreement with the management team on a price for the Canadian businesses that fairly reflects their value and which would have been acceptable to a majority of the company's shareholders.
“We are confident that the Canadian businesses have a strong future and that shareholder value will be enhanced by focusing on growing these, rather than seeking a buyer at this time."
Travelzest, which had operated a number of niche tour opertor brands, has been gradually consolidating and closing down its UK interests to concentrate on its more profitable Canadian interests.
It still owns and operates the websites flight.co.uk and holiday.co.uk.