Capricorn Timber Ltd has gone into administration and is now being run by Tenon Recovery.
Administrators made about 12 people redundant after taking over the Uttoxter-based cladding specialist on December 23. Managing director Roger Arveschoug told TTJ that just a skeleton staff remained.
He said Capricorn’s bank had not been willing to further support the company with credit because of a downturn in sales “even though we had more than enough in equity and assets to cover ourselves”.
An earlier round of 12 job cuts was made last autumn as the company realigned itself to challenging trading conditions.
Last year Capricorn centralised its operations by opening a new 16-acre 187,500ft² site near Uttoxeter.