Jobs lost at Wearside flooring firm

Have your say

DOZENS of jobs have been lost after the collapse of a Wearside flooring firm.

Administrators have been appointed to take over at Houghton-based New City Flooring.

They are aiming to complete the company’s outstanding contracts to avoid disappointing customers and recover as much as possible of the money the firm is still owed from clients.

New City Flooring Ltd was originally established in Sunderland in 1988 to supply and fit high-quality flooring to the domestic market in the North East.

It quickly expanded into the commercial market and its customers included high-profile clients such as Barclays Bank, Lloyds TSB and Monsoon.

The company has blamed suffering reduced profits over a long period of time, which it says caused irreparable trading losses, for the decision to call in the administrators.

Administrators from Baker Tilly Restructuring and Recovery LLP have been appointed to take over at the firm.

“It is a real shame that directors of such an established company have had to make the decision that they are unable to continue trading,” said Mark Ranson, who is Baker Tilly’s joint administrator with Phil Pierce.

“The issues faced by New City Flooring Ltd were further exasperated by the general economic climate and increasing competition.

“They are unfortunately symptomatic of the pressures that businesses within this sector continue to experience.”

The firm employed 22 full and part-time staff, along with 16 sub-contractors. All but eight staff were made redundant last month, before the appointment of administrators.

Remaining staff will be kept on until work on outstanding contracts is finished.

News of the collapse of New City Flooring comes after the sale of East Durham-based Cumbrian Seafoods this week.

The Seaham firm went into administration but was immediately bought by the investment company which already owns rival Young’s Seafoods.

The move protects hundreds of jobs in the short-term but new owner Lion Capital is warning workers they have to be realistic with future options, which could involve integration with Young’s, to be explored over the coming weeks.

Young’s chief executive Leendert den Hollander said: “This is the beginning of a process and the teams involved will work hard to understand the business and consider in detail how best to take the customer contracts forward.

“Our focus is on customers – on fulfilling their contracts – and consulting with new employees on possible options for the future.”

Twitter: @Sunechobiz