A long-running Chesterfield firm has collapsed into administration – resulting in almost 70 job losses.
KM Furniture Limited, based at Pottery Lane West, Whittington Moor, ceased trading immediately on Wednesday afternoon after administrators were called in amid cash-flow problems.
Howard Smith and Jonny Marston, from KPMG’s Restructuring practice, have been appointed joint administrators.
They said most of the company’s 70 members of staff were made redundant. A total of 18 workers have been retained to “assist with the completion of work in progress and the fitting of furniture on sites to assist customers”.
Mr Smith said: “KM Furniture Limited had suffered sustained trading issues for a number of years. Most recently, the company agreed a Company Voluntary Arrangement with its creditors to help effect a turnaround of the business. Unfortunately, however, this was not enough to alleviate the company’s cash-flow problems and the company was placed into administration.
“We are now actively seeking buyers for the business and its assets and would encourage any interested parties to contact Glyn Baddeley at KPMG on 0113 231 3463.”
Founded in 1982, the company supplied educational, storage and office furniture.
A former worker said: “All employees have been told they will not be getting their salaries this week and will need to claim them back from the Government.
“Employees have been told they can go into the office on Thursday and they will be assisted in the application process for the Government compensation.”
Just before Christmas, scores of redundancies were announced at the firm in a bid to make cost savings.
The former worker added: “Twenty employees were made redundant at the start of April.
“They haven’t received any redundancy payments for the last four weeks.”
Nobody at KM Furniture Limited was available for comment.