Granville Technology Group, the company behind Time and Tiny Computers has gone into administration.

The Group shut its 78 high street Computer Shop stores this week and laid off staff at its Burnley factory. The official administrator, Grant Thornton UK LLP said: "The Group has fallen victim to the continued price deflation in the personal computer market."

Rumours that the company was in trouble surfaced last week but a company spokesman initially claimed to Computeractive yesterday the problems were not serious and should be sorted out in a few days. He said the stores had been shut because of problems over taking credit card payments but would reopen in a few days.

He went on to say the company was bringing in staff today to carry out the annual stock checking. Now however, the whole board of directors resigned en masse and only the company's non-executive chairman remains.

As the UK's largest computer manufacturer, Granville, produced around 500,000 computers a year. It sold these through its high street shops,  online, through direct mail order and through retailers including Tesco, Asda and Woolworths. Many of Granville's computers have been sold with warranties, to schools and colleges as well as individual PC users.

It is not known if orders that were currently being processed will be delivered. However, when the company, formerly known as the Time Group bought the assets of Tiny Computers it told Computeractive at that time that it had insurance to protect its warranties should it ever find itself in difficulties.

Administrator Grant Thornton has set up a dedicated help line has been set up to assist customers and creditors, including those customers who have recently made purchases but have not yet received their goods, on 0870 381 7097.

It also said it hoped to be able to maintain the existing customer support operation. It said a further announcement in this matter will be made shortly. I n the meantime, phone calls to existing customer support numbers will continue to be dealt with.

Readers who are concerned can check this site for updates on this story as we get them.