All 187 Jessops stores in the UK, including three in Shropshire, are to close with the loss of 1,370 jobs, administrators have announced.
PricewaterhouseCoopers, which was appointed to the group on Wednesday, said every shop run by the camera chain would be forced to shut.
Two branches in Shrewsbury have closed and one in Telford will go.
Jessops is the first high-profile retail casualty of 2013, after suffering from online competition and a boom in camera phones in recent years, hitting demand for digital cameras.
Administrator Rob Hunt said PwC had held “extensive discussions” with suppliers, but it was apparent that Jessops could not continue to trade.
He said stock would be collected from the shops and taken to a warehouse, where it would be returned to suppliers.
Charles Smith, Telford & Wrekin cabinet member for Housing Regeneration & Economic Development, said: “I think it is very bad news for the town centre because it means a loss of more jobs.
“As a council, we will continue to try and bring jobs into the Town Centre but at the moment it is a case of one step forward, two steps back.”
Mr Hunt added that it was “an extremely sad day for Jessops and its employees”.
The firm began its life in 1935 when Frank Jessop opened his first shop in Leicester.