Kirkby’s Ltd, the builders merchant and home improvement business in Ulverston called in the administrators last week.
12 jobs are likely to go at the family-run business which has been trading for more than 30 years.
A statement from the company said: “The directors of Kirkby’s Ltd are in discussions with regard to the future of their company. During such discussions it was acknowledged that the company could be trading whilst insolvent.
“Therefore, so as to not exacerbate the position of the creditors, which of course includes the staff, it was agreed to cease actively trading as of July 17, 2009.”