More than 250 jobs have been put at risk after a leading electronic cigarettes retailer fell into administration.

The American owner of Must Have Limited (MHL), which trades as VIP, said it resulted from an unpaid tax bill to HM Revenue and Customs of around £2.5million.

In a statement, Electronic Cigarettes International Group (ECIG) said: "Despite multiple attempts to satisfy the tax obligation and other expected near term obligations, the company is unable to continue to fund the operations or any obligations of MHL."

According to reports, 265 jobs are now under threat at VIP's 165 stores around the UK, but the company will trade as normal during the administration process.

ECIG CEO Dan O'Neill said: "Based on the administration process in the United Kingdom we will be evaluating the strategic alternatives available for the future of the company.

"Legacy financial commitments and MHL's underperformance in the UK prevented the subsidiary from meeting its financial obligations."

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