THE future of about 50 shop workers in the region was in doubt last night after the store chain they work for called in administrators.

Administrators are to be appointed to run the Gadget Shop. The chain's executive chairman is Hartlepool-born millionaire Chris Gorman.

The Gadget Shop is based in Hull and trades from 65 stores across the UK, employing 700 staff. The move into administration follows a dispute between its owners over whether the company should be sold after debts climbed to £3m and sales slumped over Christmas.

The group has stores in Middlesbrough, Sunderland, the Gateshead MetroCentre and two in Newcastle.

A spokesman confirmed that administrators would be appointed by today in an "extremely regrettable" move, but said the top priority was to safeguard the jobs of all the company's employees.

It is expected that accountants PKF will be given the job of running the company while its future is resolved, with potential buyers likely to include rival chains or private equity groups.

Problems for the Gadget Shop are believed to have mounted after a boardroom split emerged over selling the business, with 60 per cent of shareholders in favour of the sale.

Mr Gorman, Scottish entrepreneur Tom Hunter and chief executive and founder Jonathan Elvidge are all thought to be in favour of disposing of the chain.

But the move is understood to have been opposed by Freeserve founder Peter Wilkinson and trader John Wood, who own 40 per cent of the group between them. The Gadget Shop, which was established in 1991, sells items that include pocket camcorders and hand-held MP3 and DVD players, as well as toys and games.

But that sector of the retail market has become more competitive recently, with department stores and toy shops offering similar products. There is also evidence that consumer spending is slowing down.