Bosses at failed kitchen, bathroom and bedroom company Norwood Interiors are seeking a buyer for the business.
Directors and senior staff at the business said they were working with insolvency professionals “to help find the best resolution and find a suitable buyer to take the business forward.”
It comes after the company closed its Brighouse and Mirfield showrooms following a steep drop in sales – affecting about 15 staff at Brighouse and a further 15 to 20 sub-contractors who carried out work on behalf of the firm.
It is understood the firm has more than 100 creditors who have paid thousands of pounds for kitchens, bathrooms and bedrooms.
A statement by the firm said the Brighouse site had taken on “at great cost” the contracts of customers affected by the closure of a sister operation in Leeds earlier this year.
The owners also invested heavily in marketing the business to try and improve sales. Opening a satellite showroom at Whiteley’s Garden Centre in Mirfield “had a dramatic and positive impact helping to generate new business and improving margin.”
Following that success, another kitchen, bathroom and bedroom business was acquired in Doncaster with the hope of opening a new market place and improving margins further by using its manufacturing facility.
But the statement said the market place shifted again and sales across the industry began to slow down as consumer confidence was affected by an incrasingly uncertain economic climate.
It said: “Supporting the refurbishment and integration in Doncaster was absorbing cash flow and the Brighouse business decided it was time to exit this business to concentrate on the core company in Brighouse.
“However, in the second quarter conditions worsened further with weekly sales dropping to 50% of the levels achieved earlier in the year. The order book shrank from £700k to £275k forcing the directors to seek professional advice and with great regret it was concluded that the business could no longer trade.”
It said the directors and senior staff were working with insolvency professional Charles Brook, partner at the Huddersfield office of Poppleton & Appleby “to help find the best resolution and find a suitable buyer to take the business forward.”
Mr Brook said formal notices of the liquidation process were being sent out by first class post on Tuesday to all creditors, including customers who have paid deposits or larger amounts but have incomplete fittings.
A meeting of creditors is scheduled to take place on August 4 when a liquidator is expected to be appointed.