The Kingston Flyer's owner has put the business up for sale, on the same day he suspended operations because of safety concerns over the historic steam train's boiler.
Its 11 staff were laid off yesterday.
David Bryce said the safety of staff, passengers and the public was of "paramount importance" to the company, meaning it had no choice but to suspend the service. It was hoped the South Island tourist attraction, which operates at the southern end of Lake Wakatipu, would be back up and running in January next year.
The suspension meant those who had made bookings up until mid-January would need to contact the Kingston Flyer to either re-book or seek a refund, Mr Bryce said.