The jobs of up to 500 shop workers are hanging in the balance after Northern Electric Retail went into administration.
Trade unions said workers for the Gateshead-based firm – which has an annual turnover of £80m – had been treated “disgracefully”.
Hundreds of people are employed at the company’s 25 UK stores, which sell a range of household appliances.
All stores have been closed for 72 hours to allow the receivers to carry out a stock take.
Northern Ireland business Shop Electric Ltd – which was recently bought by Northern Electric Retail – has also gone into administration.
Holding company Shop Electric Group plc called in the administrators KPMG on Friday morning.
Richard Fleming of KPMG Corporate Recovery, said: “Northern Electric has suffered from competitive pressures and squeezed margins as the pre-Christmas seasonal upturn has failed to emerge.
“We hope to sell as many of the stores as going concerns and we will decide early next week whether to open some of the retail stores.”
Trade union Unison promised to do all it could to protect the workers’ employment rights.
A spokesman said: “This has come as a real blow, especially so soon to Christmas.
“Workers’ futures are now hanging in the balance.”
The Northern Electric shops business was formerly the retail arm of north eastern electricity distributor Northern Electric Plc, which sold it to an independent company in June last year.
>From The BBC