Chipsworld ltd has entered liquidation, the company has told MCV.
All 12 company-owned stores have been closed and 29 employees made redundant.
The retailer said in a statement that it has struggled in the face of ‘the credit crunch, mounting unpaid debts and the recession.'
However, it's not all over for the CHIPS business. CHIPS Franchise ltd will live on, which includes 13 stores across the UK.
The CHIPS statement in full:
It is with great sadness and regret that on Monday, July 26, 2010, the directors of Chipsworld Ltd, Nik Agar and Don McCabe, took steps to place the company in liquidation.
This action has affected Chipsworld Ltd, based at 63-65 Borough Road, Middlesbrough, and its company stores only and does not affect CHIPS Franchise Ltd, any franchise store or www.chipsworld.co.uk, which also operate under the CHIPS trade name.
The stores that operate under Chipsworld Ltd are CHIPS Middlesbrough, Darlington, Redcar, Bishop Auckland, Northallerton, Consett, Chester Le Street, Orpington, Letchworth, Portslade, Edinburgh, Hereford & Kirkham.
These stores are currently closed and the future of all these stores will become clearer in the coming weeks.
Stores which are not linked to this liquidation in anyway are: CHIPS Stockton, Stafford, Hartlepool, Arnold, Yeovil, Guisborough, Chorlton, Newcastle-Under-Lyme, Ashford, Ormskirk, Dudley, Longton and Market Harborough.
These stores are operated by CHIPS Franchise Ltd's franchisees and all will continue trading and their customers and service will not be affected in any way.
Each store and web-based operations operated by Chipsworld Ltd ceased trading with effect from Monday, July 26, 2010.
All Chipsworld Ltd staff are now redundant – this totals 29 employees from head office and at our stores across the UK.
WHY HAS THIS HAPPENED?
Since the summer of 2008, Chipsworld Ltd has battled against the credit crunch, mounting unpaid debts and the recession in order to keep afloat. On December 31, 2009, it entered a Company Voluntary Arrangement in an effort to continue trading.
Unfortunately, the recession has lasted far longer and bitten far harder than anticipated and Chipsworld Ltd has been unable to continue trading. Many of its customers, particularly in the North-east of England have been badly affected by the recession and to continue trading would only increase the company's debts further.
Both Joint Managing Directors, Nik Agar and Don McCabe, have both invested 25 years and hundreds of thousands of pounds in building up the company. They and their staff have worked tirelessly to save Chipsworld Ltd.
However, the directors have reached the decision that Chipsworld Ltd can no longer trade or operate any of its company stores.
CHIPS Franchise Ltd will continue to operate and we must stress, stores under this company banner, will continue.
The support shown towards Don and Nik after they broke the news to on-site staff on Monday morning has been fantastic and they are extremely grateful to staff for all the hard work put into the company.
Chipsworld Ltd would like to thank all its customers and suppliers for the support they have shown to the company over the last 25 years and, in particular, the very positive comments and offers of help it has received in the last 48 hours.