The company, which grew out of a student travel business and specialised in trips for young people, including gap years and volunteer projects, has ceased trading.
STA Travel has more than 50 shops in the UK, including one on Devonshire Street in Sheffield.
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The firm said customers with bookings would ‘receive further communication in the coming days’.
A statement on the STA website said: "Over recent months, the company took decisive measures to secure the business beyond Covid-19.
"However, sales have not picked up as anticipated, due to consumer uncertainties, further restrictions and renewed lock-down measures, which are expected to largely continue into 2021."
About 500 jobs nationally are thought to be at risk as a result of the firm's failure.