ADMINISTRATOR Baker Tilly is working through the outstanding contracts at a failed County Durham flooring firm.
Mark Ranson and Phil Pierce were appointed as joint administrators on Monday, after flooring and fitting company New City Flooring buckled under the weight of trading losses.
While the administrators have not completely ruled out selling the company if a willing buyer comes forward, all but eight of the 22 full and part-time staff and 16 sub-contractors were made redundant on November 23 – more than a week before Baker Tilly stepped in.
New City Flooring was founded in Sunderland in 1988 before moving to Houghton-le-Spring.
It began as a flooring company offering services to the domestic North East market but, by the time of its closure, it operated across the UK and had clients including Lloyds TSB, Barclays Bank and Monsoon. Baker Tilly said it had “suffered from reduced gross margins over a sustained period of time”, which were worsened by the current economic climate.
Remaining staff will be kept on while outstanding contracts are handled and debtor balances recouped, which the administrator expects to complete before Christmas.
Ranson said: “It’s an unfortunate truth that there are a number of companies finding the current economic climate difficult.
“We’ll be talking to customers and suppliers of the business to make sure we can complete the remaining contracts. We’re going to make sure staff are aware of their rights and, if we do find an interested party, we’ll be delighted to talk to them.”