The owners of an East Sussex-based timber company tried hard to make it work but ultimately were undone by a lack of business, according to administrators of Max Timber.

The assets of the Small Dole-based company, the successor business to Mackintosh & Partners London Ltd, were sold in an auction last week. All 40 staff, some of whom had 20 or more years’ service with the business, had already been laid off.

The Austin family set up Max Timber after acquiring the business and assets of Mackintosh Partners London Ltd from administrators almost a year ago. Mackintosh had been one of southern England’s leading manufacturers of planed and moulded timber for the furniture and timber trades but had racked up £1m losses.

Administrator Tony Murphy of Bridge Business Recovery said owner Robbie Austin had put £100,000 of his own money into Max, as well as giving the company a £92,000 loan.

But he said a lack of sales meant monthly turnover towards the end was only about £100,000 instead of the £300-400,000 necessary to break even.

“The problem was it did not have enough cash to make it work,” said Mr Murphy. “It was always under capitalised. Suppliers were incredibly supportive because of long trading relationships. But the turnover was not there because the company could not get enough sales.”

Mr Murphy said Max had total creditor claims of £870,000, of which £290,000 was from trade creditors, mainly timber product suppliers. Taxes totalled £210,000 and employee claims about £270,000.

The Austin family are also involved in a separate property holding company which owns the freehold site at Small Dole.