A business support group which began in 1899 is to cease trading at the end of the year after dwindling membership numbers made it financially unviable.

Kent Channel Chamber of Commerce announced its closure after an unanimous decision by the board at its AGM on Tuesday.

Chairman Ray Johnson blamed financial difficulties, reflecting a decline in membership of support organisations like the chambers of commerce across the country.

It has been agreed the 200 remaining members will join the rival Kent Invicta Chamber of Commerce, creating a single chamber of commerce covering the whole of the county.

Yet the move has left chief executive Tim Kidd and its one other staff member out of a job.

Mr Johnson said: “The amount of income we have is lower than our outgoings.

“We didn’t want things to get any worse and we are hoping the situation with our creditors and debtors should balance out.

“Our debts are not significant. We have reacted to the situation in good time. The debtors we have will outweight the creditors but there will be no major implications.

“In essence our members will get a better deal because they will get continuity at Kent Invicta Chamber and the chance to liaise with other areas in Kent. From their perspective it is a win win situation.

“It is a sad day at the office but on reflection, it has been a good day.”

The closure on Wednesday, December 31, will bring to an end 115 years of serving businesses based in east Kent’s Shepway, Dover and Thanet districts.

The chamber, which is based in Tontine Street in Folkestone, helped more than 100 businesses to start up each year and held regular monthly networking opportunities, as well as being a source of advice and guidance.

At its height it had more than 400 members but numbers declined as many companies turned to the internet for advice and were put off by membership fees – as much as £1,320 annually for new companies with between 500 and 749 employees.

Kent Invicta Chamber of Commerce agreed to honour existing membership agreements until their renewal date, without members incurring any additional fees.

Chief executive Jo James said: “Our focus is to create a smooth transition process for Kent Channel members joining our Chamber.

“We will set up a local economic development group to ensure the views and needs of the business community within Shepway, Dover and Thanet are represented and supported.”