A MANUFACTURING firm has plunged into administration with the loss of almost 40 jobs, The Northern Echo has learnt.
E & R Polymers, of Stanley, County Durham, collapsed following a sharp decline in sales, and called in administrators PricewaterhouseCoopers (PwC).
The majority of its workforce of 37 were made redundant with immediate effect, while a handful remain at the plant to help wind down operations.
E & R Polymers manufactured cellular rubber products for a range of sectors - principally the automotive industry - but suffered because of a significant downturn in the market.
Yesterday, PwC said there had been no prospect of selling the loss-making business as a going concern.
Ian Green, joint administrator and partner at PwC, said: "The company has struggled due to a significant reduction in sales levels and has been loss-making for some time, specifically due to a sharp decline in orders from the UK automotive industry."
He added: "Clearly this is extremely disappointing news for all stakeholders and the employees in particular."
E & R Polymers was formed in 2001 when two companies within the Evans and Reid group, Volcrepe and St Albans Rubber, merged.
But the company ceased trading on May 22, on which day most of the staff - including two at French subsidiary company, Volcrepe (France) SAS, based in Halluin, near Lille - lost their jobs.
PwC said in a statement yesterday: "On appointment, with no prospect of a sale of the business as a going concern, the majority of the employees were made redundant.
"Remaining staff will assist the administrators in realising the remaining assets of the business for the benefit of all creditors."
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