Tile manufacturer Pilkingtons has been placed in administration.
Staff have been sent home by the joint administrators Paul Flint and Brian Green from the Manchester office of KPMG Restructuring. Although no redundancies have been made yet, some 380 jobs are thought to be at risk.
Pilkingtons supplies tiles to merchants, tile retailers and retail chains, including B&Q. The company also owns Quiligotti Access Flooring, which specialises hardwood and acoustic flooring for the commercial construction and housing sectors.
Flint said the firm had “suffered intense cash flow pressures as a result of recent adverse trading conditions”.
The company posted a pre-tax loss of £2.9m in the year to March 31, 2009, which also saw sales drop by 3.8%. It was bought out in 2004 by a management team headed by chief executive Ray Tarr. The Manchester base employs 325 staff, while sites in Dorset, Dublin and Tameside employ a further 55.
KPMG will continue trading the business while looking for a buyer.