A VAPING company has gone into administration following an unpaid tax bill.

Must Have Limited, which trades as VIP, is a leading brand in the electronic cigarette market but must now find a buyer.

Established in 2009, the company, based at Bury South Business Park in Dumers Lane, Radcliffe, employs 265 staff in 165 shops across the UK.

In 2014 it was sold for more than £30 million by American firm Victory Electronic Cigarettes Corporation, now known as Electronic Cigarettes International Group (ECIG). Anthony Collier and Geoff Rowley, partners at business advisory firm FRP Advisory, have been appointed as joint administrators to Must Have.

Mr Collier said: “VIP is a strong and well established brand in the e-cigarette market.

“Historically the business has been profitable and cash generative and we are seeking to continue to trade the business while a purchaser is sought and invite interested parties to contact the administrators.”

The advisers say that they are marketing the business for sale while seeking to continue to trade the VIP business across the company’s outlets and e-commerce division.

Dan O’Neill, ECIG CEO said that an unsatisfied tax obligation of approximately $3 million (£2.5 million) which remains owed to HM Revenue & Customs, led to the administration.

He 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.

“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.”

Currently, the 165 retail outlets continue to trade as normal and all 265 staff have been retained while a buyer is sought.