Diamond travel agencies in Virginia and Maryland are closing after losing nearly $4.3 million in revenue, the company said Monday.
The Virginia-based travel agency Diamond has been the target of a nationwide lawsuit filed last month by the Maryland chapter of the American Civil Liberties Union.
The group says the Virginia-Maryland travel agency had been using state law to shut down its business.
Diamond’s CEO, Richard Krasner, declined to comment to The Washington Poynter blog, and a representative for Diamond did not immediately respond to a request for comment.
The Maryland-based Travelodge, which provides travel services for seniors and other disabled individuals, said in a statement that it had been experiencing a significant downturn in sales.
It has been in compliance with state law and is committed to providing service to our customers as efficiently as possible,” the statement said.
Diamond has been operating in Virginia for 20 years.
The company said in its statement that its operations have been in good standing since its founding in 1982.
The Virginia-Virginia travel agency has been providing services since 1998, the Virginia travel agency said.
Diamond has operations in other states including Maryland, Indiana and Indiana.
Diamond said it has taken measures to protect its customers from being harmed by its failure.
It is working to establish an outside, independent body to investigate Diamond’s operations, it said.
Follow David Harris on Twitter at @DavidHarrisWP.