The chief executive of Virgin Media has resigned with immediate effect, according to a statement from the company.

Steve Burch's decision has been prompted by "personal and family reasons", the firm said.

His role will be assumed on an interim basis by Neil Berkett, who is currently the firm's chief operating officer, with recruitment of a permanent replacement set to commence soon.

Mr Burch's departure comes shortly after the proposed sale of Virgin Media was recently suspended among fears that the credit crunch currently affecting financial markets would lead to shares being undervalued.

The resulting uncertainty over the firm's future may make finding a replacement for Mr Burch more difficult, it has been speculated.

Virgin Media's recent dispute with BSkyB has resulted in its losing customers to rivals. The spat led BSkyB to withdraw its channels from Virgin's cable TV service - which previously broadcast high-profile shows such as Lost and 24 - after the two firms could not agree on a carriage deal.