NEARLY 50 workers have lost their jobs after a rescue bid collapsed for an industrial furniture maker.

The Northern Echo can reveal an approach for NESS Contract Furniture Limited broke down this afternoon (Friday, March 6).

The move means 46 workers have been made redundant, and the firm’s future is in serious doubt after administrators admitted they are looking to sell its assets.

The company has factories in Croxdale, near Durham City, and Newton Aycliffe, County Durham, but fell into administration last month after suffering a cash crisis.

Founded at the end of the Second World War, NESS previously employed about 75 people, and it is understood some left upon the original administration announcement.

However, the majority of staff have now gone, leaving a skeleton team of seven to help find a new owner for the company, which became a market-leader in designing and making furniture for colleges, hospitals, fast food restaurants and supermarkets.

Robert Adamson, a restructuring partner at Leeds-based accountancy firm Mazars, which was appointed joint administrator, said: "We had received an offer for the purchase of the business from an interested party.

"However, negotiations broke down and a commercially viable agreement has not been reached.

"As a result, it was necessary to announce 46 redundancies.

"This leaves seven skeleton staff at the firm."

The Northern Echo can reveal one of the interested parties was DisplayWorld Group, a shop fitting and fixed furniture supply company, which works with Marks and Spencer and Ladbrokes.

Bosses said it hoped to take on NESS and create about 100 jobs.

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

It 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.”

When The Northern Echo attempted to contact Benula in the aftermath of NESS’ collapse, it did not receive a reply.