North Yorkshire agency Ripon Travel Worldchoice was unable to meet its debts when it was taken over by Hays Travel this week, said ABTA.
It said the two-branch agency, which had shops in Ripon and Knaresborough, had taken money from customers which it had failed to pass on to tour operators.
"We are talking about a very small liability here," said ABTA spokesman Sean Tipton. "Fewer than 20 bookings."
He said the customers would be protected as Ripon Travel was still an ABTA member when it made the bookings, although it resigned its membership on June 30.
The agency was founded 25 years ago by husband and wife Bernard and Linda Bateman, who are retiring.
Hays Travel will close the Ripon shop but it will keep open the Knaresborough branch and retain all Ripon Travel staff.
By Linsey McNeill
