HUNDREDS of Time computer jobs were today under threat in East Lancashire after the group's chairman announced that the company could be close to collapse.

The chain's remaining 78 stores have been closed, and some of the 580 staff at the company's Simonstone headquarters, have been asked to take holiday leave for a week.

Time, which snapped up rival Tiny in 2002 to become the UK's biggest computer retailer with a 30 per cent share of the market, is owned by Granville Technology Group.

Its chairman Bill Davies said today : "It could well be the case" that the company is close to collapse .

Time is one of East Lancashire's biggest business success stories.

Started in a corner shop in Blackburn in 1987 it mushroomed into a computer giant and there are now more than two million Tiny personal computers and laptops in UK homes.

Finance director Kieran Crowley has quit, the company has admitted. Other reports that more directors have followed suit have not been confirmed.

The company was founded by two Blackburn men, Dr Tariq Mohammed and his brother Tahir Mohsan.

Mr Mohsan, said to be worth £70million in 2003, resigned as managing director last year.

Company director Richard Harris also confirmed that Dr Mohammed 'has taken a back seat.'

The company's accounts, due to be filed at Companies House in April, are now three months overdue.

Rumours have been circulating on the internet for weeks about problems at the company, which prompted an internal investigation into the source.

Mr Harris, a director at Time, said: "Last week we had a few production difficulties in terms of stock coming in and we requested people in the manfacturing part of the business take holidays last week.

"There was certainly nobody sent home under duress."

When asked if the rumours that people had not been paid were true, Mr Harris said: "I hope not or else I would be working for free."

Mr Harris confirmed that stores had been closed, but said this was a fault with the store's credit card processing facilities.

Time stores, called The Computer Shop, were today displaying signs that stocktaking was taking place.

Mr Harris had said yesterday he expected the stores to re-open today.

He denied claims that Time had defaulted on a loan with HSBC, one of the company's main creditors.

Although trade unions aren't recognised at Time, the GMB has been contacted by staff concerned at what is happening.

Graham Coxon from the GMB said: "I have been contacted by a worker at the company who said he had been told to go home last week because there wasn't any work. He said he was told to take holiday pay or he wouldn't get paid at all.

"On Monday when he returned to work he was sent home again. I also believe that workers have had a couple of late pay days. This does cause us some concern."

Workers were arriving at the site as normal this morning. One man, who asked not to be named, said: "We've all heard the news and are just worried about what is going to happen."

Another worker said: "We all just want to know what the bosses say about it."