Minneapolis-based Hobbit Travel said it's temporarily shutting down.
In a news release Tuesday night, the discount leisure travel agency cited "financial difficulties and the present economy."
The company said it's been "particularly hard hit by the recession and has suffered declining revenues and earnings."
In the statement, Hobbit President George Wozniak apologized for the inconvenience to employees, customers and trade partners.
Wozniak said he hopes to find additional financing or a strategic partner to resume operations in the next few weeks, and has retained a turnaround advisory firm to help find financing.
The statement provided few other details, and company officials did not immediately return messages seeking further information.