THIRTY workers at a North-East flooring firm have lost their jobs and the company has gone into administration.

New City Flooring Ltd, based in Houghton-le-Spring, called in administrators on Monday after being hit by the economic downturn.

It was confirmed yesterday that the firm, originally established in Sunderland in 1988, had made 14 full and part time staff redundant, as well as shedding 16 sub-contractors, in November, prior to the appointment of the administrators.

The eight remaining staff now face an uncertain future. Administrators Baker Tilly said they would be retained while the firm, based at the Market Place Industrial Estate, completes outstanding contracts, but that work is expected to be completed by Christmas.

The company, which operated across the UK, worked in both the domestic and commercial markets, with some of its clients in the latter including Barclays Bank, Lloyds TSB and clothing chain Monsoon.

Mark Ranson, North-East restructuring and recovery partner at Baker Tilly, said: "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."

He said that the company had suffered from reduced profit margins over a sustained period of time, which in turn had led to irreparable trading losses.

"The issues faced by New City Flooring Ltd were further exasperated by the general economic climate and increasing competition and are unfortunately symptomatic of the pressures that businesses within this sector continue to experience," Mr Ranson added.

The flooring industry, like many industries related to the construction sector, has suffered a downturn in business during the recession as building and improvement projects are put on hold.

Last year vinyl flooring producer Armstrong World Industries announced it was closing its plant on the Teesside Industrial Estate, in Thornaby, employing 163, because European demand for residential flooring had plunged to such a low level.