The New Zealand indie rock band formed in 1980 and was one of the earliest proponents of the Dunedin Sound.
Mr Phillipps’ songwriting career spanned four decades.
They became popular around the world with hits like Pink Frost, Doledrums, I Love My Leather Jacket, Heavenly Pop Hit, and Male Monster from the Id.
Earlier this year, he started selling much of his beloved pop culture collection on TradeMe, which included collectable books, comics, posters, toys, CDs, DVDs, and about 3000 rare records.
The 61-year-old had long battles with drug addiction, alcoholism and contracted hepatitis C in the 1990s.
In 2019, a documentary titled The Chills: The Triumph & Tragedy of Martin Phillipps, explored the history of the band and Mr Phillipps' contemporary struggle with hepatitis.
Close friend Scott Muir told the Otago Daily Times it was "with broken hearts" that family and friends advised of Mr Phillipps’s death.
He said it was "unexpected".
"The family ask for privacy at this time. Funeral arrangements will be advised in due course."
An obituary will follow.