Solent Motor Group's Portsmouth-based Mazda, Citroen and Nissan outlets closed yesterday forcing 73 staff out of work just as they were about to receive one of their last pay packets before Christmas.

Although some staff were told by phone the night before, the first many knew of the collapse was when they turned up for work to be confronted with locked doors and a notice. Some fear they will not get paid at all.

One mechanic at the Nissan garage, who did not wish to be named, said: 'I don't know what I'm going to do. I've got a baby at home and my rent comes out today, as well as a phone bill. I've got nothing, not even any food in my house.'

David Westbrook, manager of the Mazda branch, which employed eight staff, said: 'I got a call at 9.30 on Thursday night from one of the directors, saying they'd had to wrap up the company so don't come in.

'Obviously in today's climate with Woolworths and MFI, I can't say it's a surprise to hear of companies going into receivership. But I thought as far as the Mazda dealership went it was going OK. So I am very surprised.

'No-one has spoken to me about what happens next. As far as I'm aware I'm still employed by the group. But I don't know where we go from here.'

Suppliers were also left out in the cold, and at 9.45am yesterday, a giant 12-tonne vehicle transporter arrived at the Mazda showroom in London Road.

The driver had a cargo of new Mazda 3s and was planning to deliver two to the Portsmouth showroom – only to find there was no-one there to take them.

The Northampton-based driver, John Davey, from transport firm AutoLogic, said: 'To be honest we had no idea at all – I'm just as much in the dark as anyone else.'

A statement from Solent Motor Group said it blamed the current economic climate for the closure and that it had tried to save the business.

Even luxury carmaker Rolls-Royce is feeling the pinch. It announced lay-offs and reduced production days yesterday.

It is laying off 40 temporary staff and cutting production by two days at its Goodwood plant this month, in addition to the planned three-week Christmas shutdown.

The company currently employs 700 permanent and 200 temporary workers. It is understood all those to be laid off are temporary agency employees working in manufacturing, whose jobs are to go 'this side of Christmas'.