AN industrial furniture manufacturer formed at the end of the Second World War has collapsed with the loss of almost 70 jobs.

Administrators are now hoping to find a buyer to rescue County Durham-based Ness Contract Furniture Limited which has entered administration following a cash crisis.

NESS was established by Fredrick Corner in 1945 and became a market-leading designer and manufacturer of bespoke furniture to a wide range of clients, including colleges, hospitals, fast food restaurants, supermarkets and betting shops.

The company employed about 75 skilled craftsmen and office staff at its factories in Croxdale, near Durham City, and Newton Aycliffe. A skeleton staff of 10 have been kept on while new owners are sought.

NESS was bought in June 2013 by private equity investors Benula Capital Limited, based in Crowborough, Sussex. According to a statement on the NESS website Benula had intended to "provide targeted investment to capitalise on the growth opportunities in the UK and emerging prospects abroad." No one from the private equity firm was available for comment.

Robert Adamson from Leeds-based accountancy firm Mazars has been appointed as joint administrator alongside his colleague Tim Askham. They are now responsible for the management of NESS.

Mr Adamson, said: “This is a very sad day for the North-East business and the many people working there given the long history of the company. We will provide support to employees relating to potential redundancies.

"We are currently formulating a strategy in relation to the company and are considering trading the business whilst in administration, with a view to attempting to dispose of the business as a going concern. To that end, we would welcome approaches from commercial parties interested in acquiring the business or assets.”

The administrators said that despite some significant sales opportunities this year, NESS has been experiencing some difficult trading conditions due to price competition and changing customer preferences, as well as some one-off exceptional costs. The company had incurred substantial losses in the last few months resulting in a deterioration of its working capital position, from which it was unable to recover.

The strain of these losses became too great and all but used up the funds allocated by shareholders in May 2013 to help turn around the company.