Supermarket chain in administration

The remaining 56 supermarkets will transfer to a new company.

Shop workers' union Usdaw said hundreds of its members who had been working without pay for the past few weeks while a rescue package was finalised would be "devastated" by the news.

The company told the High Court in Manchester that it wanted to transfer 56 stores to a new firm which the union believed would trade as Fresh Express. The judge agreed to the move.

The union said it was told staff in the supermarkets remaining open would receive their back pay by next Tuesday.

But the workers made redundant and those who lost their jobs last month when Kwik Save closed 81 supermarkets would have to apply for money to the administrators.

Joanne McGuinness, the union's national officer, said: "Usdaw members have been working for nothing for the last six weeks, enduring great hardship in the hope that their sacrifice would help save the company. So staff in the stores earmarked for closure will be utterly devastated.

"Our members will be feeling totally let down by Kwik Save and we will support them through the next difficult period as they claim statutory redundancy pay.

"Our members have shown incredible strength and resilience in trying to keep the company alive and have had to rely on handouts from relatives. Some have faced losing their homes."

The union said the workers were now paying the price of under-investment in the stores and the failure to address problems in the supply chain which had left some stores with little or no stock.