The boss of a family-run firm which suddenly closed its doors at Christmas has dismissed speculation it was a smokescreen for new housing.

Chalkwell Garage Services shut to customers on December 22 – although did not confirm its closure until last week.

The garage, in Chalkwell Road, Sittingbourne, specialised in MOT testing and servicing for cars and commercial vehicles.

The garage's exodus from Sittingbourne town centre came just five days after the shop's business next door, Discount Tyres, went under the hammer for almost half a million pounds.

Land and property auctioneer Clive Emson had put a guide price of £250,000-plus on the former yard but at an auction on December 13, the premises were sold for £454,000 after 114 bids.

The closure of both sites led to speculation online that new housing could be on the cards for the area.

However, Chalkwell's managing director, Roland Eglinton, says the building will not be sold.

He explained: "The garage was a small part of the Chalkwell business as a whole.

"We have had more contracts on the bus side of things lately, which has led to some more work for us and meant we couldn't focus 100% of our attention on the garage.

"So closing in an orderly way like we did was the best thing we could do, as we were struggling to juggle everything at once with the other businesses moving well.

"As has been suggested, it's got nothing to do with us wanting to sell the garage so new homes can be built.

"It is not on the cards for the garage to be sold at all - not even in the near future.

"It will be used for storage and as an alternative site for buses if need be.

"We have no idea what is happening with the place next door either as has been claimed."

Mr Eglinton says stopping the garage was far from an easy decision given its family history.

He added: "The company has been in my family for nearly 100 years since being set up by my grandad in the 1930s, so it has a lot of history behind it which we were never going to just give up.

"The garage itself had been there since about the 1960s too so it was a tough decision for me, the family and the other management members, and not something taken lightly.

"We also had three workers on the books - two mechanics and one receptionist - who we helped find new employment too prior to the closure."

The Chalkwell brand also provides coach hire and bus services, which remain trading.

The garage had been open from 8am to 5pm on weekdays, and on Saturdays from 8am until 12.30pm.

The decision came as a disappointment to its customers, with one person saying: "No way. Going to have to find somewhere else now."

Another added: "It's so sad to see these small firms going out of business. Everybody is the poorer for it."