Time Computers has closed its 78 UK retail stores, which trade as The Computer Shop selling Time and Tiny computers.
Time is owned by Granville Technology Group, formerly known as Time Group, and makes 500,000 computers a year and employs 1,100 people.
According to a report in The Guardian all directors except its part-time chairman have resigned, and staff at its Burnley factory were being laid off. It is understood that an application for the company to go into administration will be filed today.
There are around two million Tiny PCs and laptops in UK homes as well as thousands of Time Education computers in schools, colleges and universities. Time PCs are also sold through Tesco, Asda and Woolworths.
"Although this is bad news for all those directly affected it is good news for the UK consumer. They were terrible computers and the problems with them were a regular feature on the Watchdog TV programme," said computer consultant Adrian Mars.
"My favourite was the story of a flat screen that blew up when it was plugged in. The response from the support line was: 'Could you just plug it in again so that we can hear what it sounds like.'"
The company's direct mail and website business is continuing to take orders. Granville also owns The Computer Shop, Time Education and Tiny Computers. It employs more than 1,500 people.
Granville acquired Tiny Computers from administration in 2002 with debts of more than £35m. The 143 Tiny stores added to Time's existing outlets taking the total at the time to more than 290 shops in the new group.
The company was unavailable for comment at time of going to press.
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