Historic carpet firm closes down

The firm has made carpets for palaces and leading hotels

A carpet firm which has supplied Buckingham Palace has gone out of business with the loss of 135 jobs.

Bosses at Hugh MacKay Carpets, on the Meadowfield Industrial estate in County Durham, called in the administrators last month hoping to find a buyer.

But despite "scouring the country" administrators, Ernst Young, have failed to sell the company.

On Friday the 102-year-old firm closes its doors. Cut-price competition has been blamed for the firm's collapse.

Nick Halton regional organiser for the TGWU union, used to work at the factory and helped try to find a buyer.

'Legal advisors'

He said: "We lived in hope but the amount of interest shown was very sparse.

"There are a number of reasons why the company has failed - manufacturing in this country is in decline.

"Also customers tastes have changed, many prefer wood floors and cheaper imported carpets.

"The workers have had no notice and they are entitled to consultation over redundancies. We are looking at this matter with our legal advisors."

Attempts are still being made to find a buyer for the company's carpet designs.

A statement from Ernst Young said: "We came to the conclusion that taking on any further orders would be uneconomical."