"We believe our plans offered a positive, value-for-money way forward for passengers, taxpayers and local communities, ensuring the continuation of the exciting transformation already under way on East Coast and a smooth transition to the government's new East Coast Partnership", explained Griffiths.
The East Coast main line franchise is a joint venture of Stagecoach, which owns 90% of the franchise, and Virgin, which holds 10%.
The transport secretary, Chris Grayling, told the House of Commons that after a "finely balanced" assessment by civil servants, he had made a decision to appoint the "operator of last resort" - a group led by the firm Arup and under government control - to run the service, rather than allow Stagecoach and Virgin to continue under fresh terms.
The Government had two options relating to the future of the East Coast mainline: nationalising the line temporarily or renegotiating a not-for-profit management deal with the two operators.
"However, we respect the government's decision".
But the contract will be terminated on June 24, Mr Grayling said, and the line will be re-named the London and North Eastern Railway, the LNER.
The service is being brought back into public ownership after a string of failures by Stagecoach and Virgin in recent years.
Stagecoach pledged to "work constructively with the DfT and the OLR in the weeks ahead to ensure a professional transfer to the new arrangements".
Passengers want reliable rail services and they want more of them.
In a statement to the MPs, Mr Grayling denied the East Coast line was a failing rail service but admitted Stagecoach and Virgin stood to lose around £200m.
The Member of Parliament for York Outer noted the unique set of infrastructure challenges on the East Coast Main Line, following the Minister's statement in the House of Commons, before asking what steps will be taken to address these.
"Anything else risks playing out the same expensive farce over and over again".
He said: "Every announcement is a smokescreen to divert attention from the failings of the Transport Secretary's policy".
"This is one of the areas where we can supplement public investment, of which we're putting a record amount in the next five years, with private investment that can unlock the potential of digital technology to create even more capacity on our railways".
It is the third private operator to fail to complete its full term in running services on the route.