Cooper Callas, one of the largest independent bathroom and kitchen distributors, has gone into administration after almost a century-and-a-half in business.
The company cited the loss of a key supplier as the main reason for its decision.
Forty-one people out of a workforce of 68 have been made redundant.
Mark Boughey and Matthew Haw of RSM Restructuring Advisory LLP have been appointed as joint administrators and will be assisting with the redundancy claims.
Established in 1875, Cooper Callas supplies a range of 27,000 kitchen and bathroom products to around 1,200 independent retailers throughout Europe.
“The significant loss in sales was too great a gap to bridge in the limited time available, with every effort being made to secure the future of the company and its workforce,” said Cooper Callas managing director Philip Carr (pictured). “During 2015, the company returned to profitability after several years of losses, underlining the hard work and dedication of all members of staff.”
Mark Boughey of RSM added: “Earlier this year, Cooper Callas suffered the loss of a key supplier that accounted for around 25% of its turnover. Despite the efforts of the directors and other key stakeholders, it was not possible to secure the necessary additional funding and investment that was required to meet the resulting trade losses and shortfalls in working capital.
“Regrettably, a number of redundancies have been necessary, and we are working closely with the managing director and the remaining workforce to oversee an orderly wind-down of the business.”
Speaking to kbbreview, a senior industry source said: “This is sad news for a long established company and a blow for independent distribution in the UK. Somewhere along the line, something has gone badly wrong which has caused Cooper Callas to run out of cash in spite of returning a profit. In the short term their suppliers will now have to await the outcome of the administrative exercise and also assess the impact of losing a major route to market.”