The joint administrators of Dewsbury-based bed and mattress manufacturer Kozee Sleep Beds informed 160 of the 174 employees that they have been made redundant.
The company and its subsidiaries, Restus Beds Limited and Hick Lane Bedding Limited, in addition to a property investment company within the group, Hick Lane Properties Limited, ceased trading shortly after the appointment of Jonny Marston and Howard Smith of KPMG’s Restructuring practice on Tuesday May 19.
In a statement KPMG said that all the remaining 14 members of staff were being retained in the short term to help with administration.
Jonny Marston, joint administrator and restructuring partner at KPMG, said: “Since our appointment we have established the business’ financial position and conducted a sale of business process. Unfortunately it has not been possible to complete a going concern sale at this time and regrettably this means the workforce cannot be retained.
“Our employee specialist attended the meeting we held with the staff to let them know the situation and provided an information pack to each employee, containing guidance on how to make claims for payments owed to them, for example arrears of wages.
“We have also shared information from the local job centre, with which we have been in contact.”
It is not known what redundancy settlement was agreed with staff, who last week staged a sit-in protest after not being paid for nearly two weeks.
Alarm bells first rang in mid-May when staff were sent home and put on potential redundancy notice.
Dewsbury MP Paula Sherriff last week said she hoped the business would stay open.