Thomas Cook has confirmed that all the companies in its group have ceased trading after failing to secure a rescue package from creditors.
This means that all holidays and flights provided by these companies have been cancelled and are no longer operating.
All Thomas Cook's retail shops have also closed - including Scarborough's branch on Westborough.
A notice has been put in the shop window this morning stating: "This shop has been closed with immediate effect.
"All customer enquiries should be directed to the website thomascook.caa.co.uk for further information."
After it was confirmed this morning that all retail shops have also been closed, residents have left comments for those affected including company employees and those due to go on holiday.
Comments online included: "Such a sad day, my heart goes out to all the wonderful employees of the company who try so hard to please always giving 100% dedication."
"Absolutely devastating news this morning, I've friends at Scarborough branch, cabin crew and operation crew all who have worked for the company for many many years. They have lost their jobs today the government will ensure everyone gets home, monies will be paid back from the CAA and people will be able to rebook holidays in time. For those who have lost their jobs this morning there is no help for them to pay their mortgages and bills - I'm truly sorry for you all. The travel industry will never be the same."
"I feel very sorry for people who have booked with Thomas Cook but more sorry for the people who have lost their jobs."
"Really feel for the staff and those stranded on holiday and those who have booked and still to go."
More than 150,000 Thomas Cook customers are currently abroad and will need to be repatriated as a result of the collapse.
The Government has asked the UK Civil Aviation Authority (CAA) to launch a repatriation programme over the next two weeks, from today (Monday September 23) to Sunday October 6, to bring Thomas Cook customers back to the UK, according to the CAA.
In a statement the Civil Aviation Authority, said: "We know that a company with such long-standing history ceasing trading will be very distressing for its customers and employees and our thoughts are with everyone affected by this news.
"Due to the unprecedented number of UK customers currently overseas who are affected by the situation, the Civil Aviation Authority has secured a fleet of aircraft from around the world to bring passengers back to the UK with return flights.
"Passengers in a small number of destinations may return on alternative commercial flights, rather than directly through the Civil Aviation Authority's flying programme. Details and advice for these passengers are available on the dedicated website.
"The Civil Aviation Authority has launched a special website, thomascook.caa.co.uk, where affected customers can find details and information on repatriation flights, as well as advice on accommodation for both ATOL and non-ATOL customers.
"Due to the significant scale of the situation, some disruption is inevitable, but the Civil Aviation Authority will endeavour to get people home as close as possible to their planned dates. This will apply to both ATOL protected passengers and those who are not protected.
"Customers currently overseas should not travel to the airport until their flight back to the UK has been confirmed on the dedicated website.
"Thomas Cook customers in the UK yet to travel should not go to the airport as all flights leaving the UK have been cancelled."