FEARS were last night growing over potential asset-stripping at a collapsed industrial furniture maker.

The Northern Echo previously revealed how NESS Contract Furniture Limited had fallen into administration, with nearly 70 workers losing their jobs.

According to its last accounts, which covered the period to December 31 2013, the firm was showing a loss of £1.3m.

Administrators are now trying to find a buyer for the company, which was founded at the end of the Second World War by Fredrick Corner and designed and made furniture for betting shops, fast food outlets and supermarkets.

It employed about 75 skilled workers and office staff at sites in Croxdale, near Durham City, and Newton Aycliffe, County Durham.

Ten people have been retained while a buyer is sought.

The firm was bought in June 2013 by Sussex-based private equity investors Benula Capital Limited, which said it wanted to “provide targeted investment to capitalise on the growth opportunities in the UK and emerging prospects abroad.”

However, when The Northern Echo attempted to contact Benula, it received no reply.

Sedgefield MP Phil Wilson, whose constituency includes Newton Aycliffe, said NESS’ demise was devastating.

He added: “This is sad news for the staff.

“I hope the administrators are working with the Job Centre to help find work for those who have been laid off.

“Private equity firms can be a force for good, but there can also be an opportunity for asset-stripping, and I hope that is not what’s happened here.”

Roberta Blackman-Woods, Durham City MP, said she was seeking talks with Benula and had questions that needed answering.

She added: "It is really sad because the company clearly employed some really skilled craftsmen.

"I'm trying to contact Benula because I have questions for them, and I'm surprised they are not being more available in order to do that."

The Northern Echo has learnt NESS did not contact Durham County Council’s business division, Business Durham, prior to its collapse.

However, Business Durham has since contacted the firm and administrators to offer support.

But Councillor Mark Wilkes says he has put urgent questions to the council about how much it knew about NESS’ troubles.

He added: “Just down the road at Thinford, the council has spent tens of millions of pounds on a new business park.

“I would be interested to know what we knew about the problems at NESS.

“If we did know, what did we do to help, but if we didn’t, why was that?

“We seem very good as a council at building new business sites, but perhaps we also need to place some added emphasis on working with existing businesses and finding out what financial condition many are in.

“This way, we can assist as many as possible when the need arises, and perhaps find out about issues before it is too late.”

The company, formerly known as NESS Furniture Limited, also designed and made furniture for colleges and hospitals, and at one time had a workforce of more than 100 people.

In November 1988, The Northern Echo reported how Newcastle United footballers Dave Beasant, John Hendrie, John Robertson and John Cornwell visited NESS to present manager Bob Erskine with a commemorative cake.

Joint administrator Robert Adamson, from Leeds-based accountancy firm Mazars, said it would help staff to find new roles.

He added: “We are formulating a strategy and considering trading the business while in administration, with a view to attempting to dispose of the business as a going concern.”