More than 300 North-East jobs were under threat last night after a department store operator went into administration.

Bosses at Owen Owen, which runs Robbs of Hexham, founded in 1819, and the 200-year-old Joplings of Sunderland, have blamed their plight on cash flow difficulties.

The firm bought the two North-East department stores in January 2005 for a total of £8m and also owns sites in Liverpool and Aberdeen.

Hexham Conservative MP Peter Atkinson said last night the announcement was very worrying and Sunderland City Council leader Bob Symonds called it a big shock.

Owen Owen chief executive David Thompson said it was "business as usual for the stores" while the firm evaluated its options.

It is thought there are about 140 staff at Robbs in Hexham and a further 180 at the Joplings store in Sunderland and Mr Atkinson said: "It is obviously a concern. Robbs has played a central role in the town for many generations. Obviously the staff and their families will be very worried.

"The store also has many loyal customers who will be deeply concerned about this announcement. The retail environment has been pretty tough in Hexham. We have had the arrival of Tesco in Tynedale Retail Park and Morrisons turning into Waitrose.

"It is, however, not necessarily the end for the store. I am hopeful Robbs would be attractive to a buyer as a stand alone concern rather than as part of a group."

Mr Symonds said Sunderland Council would do everything in its power to help Joplings survive.

He said: "We were delighted when Owen Owen took over in 2005 and ensured the store's future and it was a big shock to get this news. Joplings is one of the city's institutions. It is part of the city's history.

"At this stage the future of the store's staff is paramount. As a council we will be looking to ensure the employees' jobs are safe."

Managers at Owen Owen called in the receivers yesterday morning. It is understood the move followed a refusal by bankers to extend the firm's overdraft.

Mr Thompson said: "I would like to reassure customers that it is business as usual for the stores. I am proud of the company's heritage and the long-standing support that it has enjoyed for over one hundred years.

"I ask that customers continue to support the company during this challenging time to ensure that this iconic business will continue in the future and preserve its local heritage."

Philip Duffy and David Whitehouse, partners at Kroll's Corporate Advisory and Restructuring Group, have been appointed as joint administrators.

Mr Duffy said: "We are continuing to trade the business as a going concern while we evaluate options. These department stores are strong local brands and we are therefore hopeful of securing the future of the business.

"We fully appreciate that this is a concerning time for employees as well as local consumers, and we will keep all stakeholders as fully appraised as possible."

No-one from Robbs or Joplings was available for comment last night.

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200 years of innovation

Joplings has been serving the city of Sunderland for more than 200 years.

It started out as a drapery business in the city's High Street East in 1804, a joint venture between Thomas Jopling and Joseph Tuer.

The store was bought in 1882 by Stephen Moriarty Swan and Robert Hedley, and although it then began trading as Hedley, Swan & Co, it was still know as Joplings. By 1919, Joplings had moved to larger premises in High Street West and marked its grand opening with the biggest half-price sale Sunderland had ever seen. It even had its own currency.

Joplings moved to its current premises in John Street in 1956 with another innovation - the city's first escalator.

The business bought Robbs of Hexham in 1981 and the two stores were sold to Owen Owen in 2005.

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Family launched shop in 1819

Robbs of Hexham opened in 1819. For more than 160 years it was run by the Robb family, who expanded it to include ladieswear, menswear, food and gift sections.

In 1981 Robbs, in Fore Street, was sold to Sunderland's Joplings business.

Its ownership changed hands again in 1987 when Joplings was bought by the Merchant Retail Group, owners of The Perfume Shop chain.

From July 2004 until the end of that year the store's future was uncertain after its owners put it up for sale.

It was finally bought - along with Joplings of Sunderland - by Owen Owen in January 2005.

The Liverpool chain bought the two stores and their contents for a £8m.

Over the years Robbs has faced increasing pressure with the arrival of retail companies such as Tesco, Morrisons and Waitrose in Hexham.

The store celebrated its 185th anniversary in 2004.

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Company has a proud history

Owen Owen owns four department stores in the UK - the two in the North-East as well as outlets in Liverpool and Aberdeen.

The company began life as a drapery store on London Road in Liverpool.

As it expanded it bought rival chain TJ Hughes, and before the Second World War the company also built a store in Coventry.

In the early 1990s it bought several Lewis's stores, before Philip Green took it over.

The company was stripped of its assets and its portfolio cut from 12 stores to one, Lewis's of Liverpool, which remains its largest store.

In early 2005, Philip Green sold his stake in the business to David Thompson, who began Owen Owen's expansion.

The company bought Joplings, Robbs and Esslemont & Macintosh in Aberdeen from the Esslemont family.