Electronic goods chain BCC has been declared bankrupt due to the rising cost of staff, energy and rent.

The chain’s 1000 strong workforce were told about the bankruptcy on Thursday via an internal e-mail seen by broadcaster NOS. Curators told staff the shops, some 50 in total, will remain open for the time being to increase the chances of a relaunch.

BCC, which is part of the Mirage Retail group which also owns Blokker, has been battling “persistent and increasingly pressing market circumstances, Mirage Retail CEO Michiel Witteveen told the FD.

“Rent, wages and energy have all gone up. To make money you simply need bigger margins but the big suppliers refuse to cooperate,” he told the paper.

BCC has also been facing competition from online shops such as Bol.com and Coolblue.

Whether or not BCC will honour outstanding orders is not clear, nor is the longer-term fate of the chain’s staff. Union CNV said workers waiting for this month’s paycheck will only receive an advance of €250.