Fabric Warehouse Operations Limited, trading as Fabric Warehouse, shut its doors this week, blaming interest rate rises and a 'challenging retail environment'.
The Hampden Park store, which branded itself 'Britain's largest fabric retailer', left a sign on the door explaining to customers it was closed and giving contact details.
Neil Bennett, of corporate recovery specialists Leonard Curtis, has been appointed administrator to the business which supplied fabrics, home wares and ready-made curtains.
With its headquarters in Rotherham, South Yorkshire, the business traded from 31 stores from Plymouth to Edinburgh.
Results for the year to April 2007 show a turnover of approximately £25 million.
Mr Bennett said, "By late last year the business was already in difficulties, due, in the view of the directors, to consecutive interest rate rises and a challenging retail environment and the business in its current form became unsustainable.
"We have now completed the sale of 10 stores to Caldeira Retail Limited who will buy the stock in these stores and take over the employees, as well as buying the stock of a further 16 stores.
"Caldeira is also taking over the responsibility for completing customer orders in 21 stores. In addition we will be working alongside the management of Fabric Warehouse to complete the remaining customer orders in the remaining stores where deposits have been paid.
"This is important because it means that customers who have paid deposits will not lose out."
The Eastbourne store employs 10 people.