Grand Central confirmed today the arrangement with Innovation Facilities Ltd (IFL) was due to end on September 14 – but declined to say why.

A spokesman said: "The firm is now looking at other ways to provide a catering service on its trains between London and King's Cross.

"Grand Central looks forward to providing an enhanced catering service as soon as practicable."

IFL's Mike Adamson said the firm had been forced to pull out.

He said:"As a catering contractor, we have stuck with Grand Central as long as we can. There comes a point when you realise it is not going anywhere and you have to withdraw,

"We have got 15 people here and we have to look after them. We are working as hard as we can to make sure it ends up with a satisfactory conclusion."

The Echo reported in March last year that IFL had started recruiting chefs, head stewards, stewards, trolley staff and cleaners for the trains, along with a head chef/manager, warehouse staff, catering assistants and contract administrators to work at a new food production unit in Sunderland.

The firm was working with Grand Central to identify suitable premises close to Sunderland Central station.

"It is a wonderful opportunity and we are delighted to be associated with such a project," said IFL boss Brendan Woods at the time.

The new Sunderland kitchen would produce meals for the trains, as well as other goods for sale.

The company unveiled ambitious plans to extend the range of catering on offer aboard the new trains, with hot food available to passengers in seats throughout the train, and not just those in first class.

"We really do hope to be able to provide hot food for standard class customers in their seat," said Mr Woods.

"We are keeping it simple – it is food in a box, nothing too fancy, but we are trying to keep it under a fiver.

"We are sick and tired of hearing excuses and people saying that it can't be done. We think it can be done and it can be done well."

Grand Central has been plagued by delays and cancellations as a result of problems with its rolling stock since the service was launched just before Christmas.

Managing director Tom Clift apologised to customers in June and said the company was working hard to put the problems right.