Hub, the variety store retailer set up by Poundland co-founder Dave Dodd, has hit the buffers.
Liquidators are in the process of being appointed to the retailer that launched in September 2010, as revealed by Retail Week.
57 jobs will be lost across four stores in Telford, Manchester, Lichfield and Stafford.
It is not clear how many stores Hub operated, but it had planned to open eight stores in its first year, followed by 10 in its second year, 2011.
The Hub said the business “did not achieve anticipated sales volumes in the middle market, which pushed Hub to position itself within the value sector where it was unable to compete with the huge buying power of established deep discount retailers”.
Dodd said: “We have fought to succeed, and have not accepted failure without a fight, but I have had to accept that despite the best endeavors of all our hardworking staff, we have been unable to create a viable and sustainable business in the current climate.
“Having taken independent professional advice, we have reached the difficult decision that liquidation is in the best interests of all involved.
“We have treated our suppliers with integrity, and are pleased that we have retained their goodwill.
In difficult economic times, it is easy to sit back and do nothing. We tried something new, gave it our best, but sadly, couldn’t make the business viable.”