Chipsworld ltd has gone into liquidation, closing 12 company-owned stores and laying off 29 staff this week.

However, the retailer’s website and 13 franchised outlets will remain operational, the company told MCV.

“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,” the retailer said in a statement.

“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.

"Chips Franchise Ltd will continue to operate and we must stress, stores under this company banner, will continue."