More than 600 jobs could be lost in Sussex after it emerged a buyer could not be found for stricken retail giant Woolworths.

Closing down sales have begun at the 25 stores across the county today after administrator Deloitte has failed to find a buyer for the firm.

With more than 600 people employed by Woolworths in Sussex, the losses signify one of the blackest days for job losses in living memory.

As well as heartbreak for workers, business leaders said the knock-on effect could spell disaster for small businesses.

The three Woolworths branches in Brighton and Hove employ 109 staff between them.

There are also shops in Shoreham, Worthing, Littlehampton, Chichester, Haywards Heath, Lewes, Hastings, Crawley, Newhaven, Seaford, Portslade, Uckfield and Lancing.

Last night half-empty shelves and signs advertising massive reductions greeted shoppers at the Western Road branch in Brighton.

Staff at all stores were waiting to find out what would happen to them.

Lewes MP Norman Baker said: “This is a terrible thing to happen for all Woolworths workers and they have my deepest sympathies, especially at this time of the year.

“This is also sad for the High Street because because Woolies has been there for generations and everyone knows the name.

“I am especially concerned about losing the Newhaven because Woolworths really is an anchor store.”

Woolworths went into administration on 26 November after it buckled under the weight of £385million of debt.

Since that time, Deloitte has spoken to a number of parties about the hope of selling the firm as a going concern.

However, it now increasingly seems that these talks have failed to find a buyer.

Last week, Deloitte cut 450 jobs and launched extensive discounts, which it insisted was not a closing down move.

The administrator has also held talks to sell off a number of store leases to rival retailers, which are said to be continuing.

Tony Mernagh, chief executive of the Brighton and Hove Economic Partnership, said: “This is very bad news for the staff and I do feel very sorry for them all. The worse thing is there are so many of them.

“This is also not going to do the Christmas sales issue any good at all.

“With sales in chains like Woolworths, Marks and Spencer and Debenhams, small retailers are struggling to cope.

“It is a dog-eat-dog world on the High Street now more than ever and it is bad news.”

Dozens more roles are in question at the six MFI furniture stores in the county after the firm also went into administration last month.

MFI has 110 stores across Britain, including shops in Brighton, Shoreham, Crawley, Chichester, Eastbourne and Hastings.

East Worthing and Shoreham MP Tim Loughton said Woolworth's demise would hit high streets across the county.

He said: “Woolworths must be one of the most high-profile casualties of the recession and it will be a great loss. Much the same can be said of MFI. I fear these won't be the last well-known chains to fall victim.”

Woolworths has 815 stores and employs 30,000 people across Britain, including 5,000 in its distribution arm Entertainment UK.

Woolworths opened its first British store in Liverpool in 1909, but the retailer has increasingly struggled to attract customers since supermarkets started to sell many of the same goods at competitive prices.

Neville Kahn, a reorganisation partner at Deloitte, said: “We continue to make every effort to convert interest in the Woolworths assets into firm offers.

"While we are still seeking bids from interested parties, Christmas is clearly the busiest time of the year for retailers and it is prudent to do all we can to sell existing stock."

He said further price cuts would help maximise sales during the busy period.