Receivers KPMG have been called in at Shildon-based Masistar Ltd, trading as Vertex Panel Products Ltd, and 120 staff laid off.
KPMG said that due to cash flow difficulties the energy supply to the Co Durham plant was cut off on Friday, February 21, rendering further trading impossible.
The receivers have already been contacted by interested parties and are hopeful that the business will be sold as a fully operational unit.
Julian Whale, the joint receiver, confirmed this week that preliminary discussions had already taken place with interested parties.
Vertex Panel Products was set up in February 2002 in a multi-million pound deal led by Joe Martoccia who, with three others, bought the assets of George Reynolds (UK) Ltd’s (GRUK) chipboard manufacturing plant.
In September Vertex bought debt-laden GRUK to safeguard its key suppliers. The acquisition meant Vertex had to pay out about £1.8m in outstanding debts to GRUK creditors.
At the end of 2002 Vertex went into administration but bounced back just days later as Masistar Ltd, trading as Vertex Panel Products. Mr Martoccia said the company had received full support from its major funders to move forward.
In early February Vertex received £4m of funding, allowing the company to retain control, save 140 jobs and complete the buyout of the business.
