One of the last remaining Irish-owned computer and electronics retailing chains is closing down with the loss of up to 60 jobs.

Compustore, which runs four stores in Dublin and Galway, ceased trading at the weekend and told its customers yesterday that it was closing its own shops.

However, several franchise operations based outside Dublin and Galway using the Compustore brand name will not be affected by the firm's closure.

Compustore, which was founded in 1992 by Mr Seán Finnerty, could apply for voluntary liquidation within a matter of days, sources believe.

None of the company directors would return calls from The Irish Times yesterday but a telephone message left for the company's customers said that it was closing.

"All Compustores are currently closed and will remain closed in the future . . . please leave a message with a brief outline of your inquiry," said the phone message, which was offered to customers who called a number posted on the doors of its stores.

However, several Compustore-branded stores based outside Dublin said they would not close as they were only franchises of the main Dublin operation.

Mr John Quinn, owner of the Compustore shop in Kilkenny, said that his shop would not be affected by the closure of the main Compustore operation.

The Compustore franchise in Tralee also said it would remain open and would change over to another franchise in the future.

Compustore, which up until recently had 13 branded stores selling electronic equipment and computers, generated turnover of €30 million, according to its last filed financial accounts.

But the recent poor retailing climate and stiff competition from direct sales via the internet from the companies such as Dell have hurt shop-based electronic retailers.

"Retailers have taken a hammering over the last 12 months in the Irish market," said Mr Quinn.

"I think the special savings incentive accounts have crucified everyone's monthly income."

Even the big players such as Dixon Stores Group - the British firm that runs electronic retailers Currys, Dixons and PC World in Europe - have been affected by tough business conditions.

Earlier this year, Dixon said it was shutting 100 stores across Europe due to poor conditions, although it is not closing any of its Irish outlets.

Compustore was one of the first Irish electronics retailers to become a nationwide chain and would have faced stiff competition from the big international chains.

The firm distributes a range of software, hardware and peripherals for the computer business from leading technology brands such as Microsoft, HP, Toshiba and Packard Bell.

Compustore also recently opened an Apple store in Kildare street in Dublin.

Despite Compustore's message to customers about its closure, the firm's website remained in operation yesterday and was still taking customer orders.

It also displayed the firm's mission statement: "Our customers are not just for today, they are for today, tomorrow and always."

A spokesman for Compustore's auditors, Dublin-based LHM, said the company seemed to be closing but would not make any further public comment.

LHM audited Compustore's last set of published financial accounts, which cover the year to the end of January 2001. It would not comment on why Compustore has not filed any financial accounts for more recent years.

The results show Compustore generated turnover of £30.1 million (€38.2 million) and profit of £360,800 in the year to the end of January 2001.

The company is expected to clarify its position publicly in the near future.