The future of a major city food store has been thrown into doubt after its parent company went into administration.

However the owners of Taj, which runs shops in Western Road and St James’s Street, in Brighton, insisted last night it was “business as usual”.

Administrators BDO were called in to take over the running of Taj Mahal Natural Food Ltd which owns the company that runs the two stores.

Rumours were rife yesterday as news spread of the administration but Amir Khan, who co-owns both companies, said employees’ jobs at the stores were safe.

The purpose of the administration process is to save the business and sell it as a going concern if possible.

Mr Khan, who runs the companies alongside Shahid and Zahid Kham, said last night: “Taj is still running and will be open as usual.

“We are a Brighton institution. We employ between 30 and 40 people and it is business as usual.

“Taj Mahal Ltd owns the stores. The parent company had a bit of issues with the banks but all our staff are still with us.

“Trade is as good as ever.”

The first Taj store, which sells Middle Eastern and organic food, opened in Western Road in May 2005, with a second branch opening in St James’s Street in June.

The company had been planning to a third outlet on the site of the Classic Lighting shop in Western Road, Brighton.

An application was made to Brighton and Hove City Council in January for permission to change the use of the building.

Amir Khan said the move has been “put on hold for the time being”. Residents expressed their concern yesterday over the future of the shops.

Bill Cowell, co-chair of East Brunswick Residents’ Association, said that independent stores in the area were under threat from the bigger chains.

He said: “We definitely have an imbalance allowing Sainsbury’s to open stores within half a mile of each other.

“Quick stores open up where there used to be little newsagents and they are draining the business from independent stores.

“We have around 300 members and we have had lots of emails from people saying how sad they are.

“The store adds a bit of colour to Western Road which is rather drab.”

Mr Khan added: “I want to say a thank you to my customers given all their support.”