Employees at a 70-year-old family business which closed at the end of November are unlikely to get wages they are owed before Christmas.
Around 20 workers at Quarmby Garage in Quarmby lost their jobs when the business crashed.
Insolvency experts were called in after director Philip Robinson, son of founders James and Betty Robinson, decided to seek voluntary liquidation.
A meeting of creditors is planned for Thursday.
When the Examiner reported that the firm was set for liquidation, insolvency practitioner Charles Brook said it was hoped the firm could make some contribution towards wages, due on December 7.
Now, it has emerged, there was no money left to pay wages and employees will have to claim what they are owed in wages, holiday pay and redundancy from the Government’s Redundancy Payments Service.
Employees cannot claim until after Thursday’s meeting and claims could take up to eight weeks to process.
Quarmby Garage was a long-established breakdown, recovery and repairs business founded in 1947.
Mr Brook, of Poppleton and Appleby in Huddersfield, said it had been hoped to pay some money towards wages but that did not prove possible.
However, all money owed would be met in full by the Government. Employees with more than two years’ service would be eligible for redundancy pay.
Mr Brook said the good news was that the “vast majority” of employees had secured other jobs. Around six had been taken on by another recovery firm which was due to take over the Quarmby site in January.
“Six recovery workers have walked into other jobs and other staff are being supported with excellent references,” he added. “To the best of my knowledge the vast majority have got jobs.
“Out of the tragedy of a 70-year-old company going out of business there has been a positive outcome. Some people will be due a quite sizeable redundancy payment too, so there is a silver lining.”
Mr Robinson had been suffering from ill health and was looking to retire.