An old-established family motor business is set to go into liquidation leaving employees without jobs for Christmas.
Around 20 workers at Quarmby Garage in Quarmby have been told the firm will go into voluntary liquidation at the end of the month.
The employees have been told they are unlikely to receive their full wage for November.
Quarmby Garage is a breakdown, servicing and repairs and vehicle transportation business which has had long-term contracts with leading recovery firms including the AA.
The firm was set up in 1947 by James and Betty Robinson, parents of current director Philip.
An employee told the Examiner that workers were called to a staff meeting on Wednesday when they were given the news.
“We were told the company was going into voluntary liquidation and that the wages wouldn’t be paid and neither would the Christmas bonuses which are always paid in November,” he said.
“We were told it was because the company wasn’t making any money and also that the directors are retiring due to ill health.
“There are some workers who have been here 15 years and another whose wife is pregnant.”
Insolvency practitioner Charles Brook, of Huddersfield-based Poppleton and Appleby, is advising the company and said employees had been informed of what would happen although nothing had yet been finalised.
He said the company was set to file for voluntary liquidation but no date had been arranged for a creditors’ meeting.
The company operated in a “very difficult” industry and even though the firm had diversified it was struggling to be profitable.
Mr Robinson had also been unwell and was looking to retire.
Mr Brook added: “Quarmby Garage is a second generation family business which has a great reputation and Mr Robinson is a very well-respected businessman who has run his company on Christian principles.
“There’s not enough money in the bank but the directors are trying to make sure there’s enough to make a contribution to employees’ wages. If bonuses are in their contracts they will be paid as well.”
Mr Brook said discussions over the future of the business were taking place behind the scenes and added: “The hope is that some of the jobs will be saved but I cannot say any more than that.”
If a company goes into liquidation employees can claim unpaid wages from the Government.