Beacon Woodcraft of Walsall, in operation since 1961, was forced to call in administrators Poppleton and Appleby after its trading position deteriorated.
Half of the 16-strong workforce have now been laid off and administrators have now warned that the company is only weeks away from going into liquidation if a buyer is not found.
The company had been hit by increased competition and a lowering of profit margins due to the recession. The company’s position deteriorated further when the cost of making long serving staff redundant was calculated.
The firm is continuing to run in order that ongoing contracts can be fulfilled. This includes one contract that relates to the London Olympics.
But now Andrew Turpin of Poppleton and Appleby has warned that time is running out for the company to be saved.
"We have been forced to slowly wind down Beacon Woodcraft after the company was unable to adapt adequately to increased competition," he said.
"The long-established nature of the business and the length of service of its skilled employees meant that it struggled to make redundancies in order to reduce costs when the economic climate became turbulent."
