The Cumbrian side currently sit bottom of the Third Division table having lost all of their previous five matches. Collins made it clear after his side's 1-0 defeat to Boston that he would not resign and so today he was pushed.
Collins was controversially sacked last season by ex-chairman Michael 'I see aliens' Knighton but was reinstalled as boss when close friend John Courtenay bought the club. There will be no way back for him at Brunton Park this time though, with Courtenay having lost patience with defeats.
Courtenay said: "As people will know, we have been an eminently unsuccessful club now for many years.
"The patience here is beginning to wear very thin and things have just not worked out. We have been very ineffectual in the last few games.
"Something had to change here and, unfortunately for Roddy Collins, the manager has taken the rap.
"There has been no lack of commitment or effort from Roddy, but we have a decent squad and should be doing better.
"Roddy needed some luck, some good bounces of the ball, but didn't get them. Our gates are now being damaged and that has an effect on our budget.
"Paul Simpson takes over as caretaker manager for as long as is necessary.
"We will have no problem attracting a good manager to come here, as in Division Three terms we are a big club. There will be no panic appointment and it could take anywhere up to eight weeks."