Skellingthorpe Saw Services Ltd has gone into liquidation with the loss of 16 jobs.
The company ceased trading at the end of October and went into liquidation on November 20 with an estimated deficiency of £289,654.
Managing director John Dexter senior said his other company, Radical Saw Technology, was continuing to trade at the Skellingthorpe site.
Peter Blair for the liquidators KPMG said: ‘The decision to go into liquidation was made because there was a distraint threat by the Inland Revenue which would have put them out of business anyway because they had run out of cash.’
He is going through the normal liquidation procedures and trying to find a buyer for the assets, adding: ‘There has been some interest in the broken-up side of the business, that is the machinery, vehicles and so on, but none in the business as a whole.’
Mr Dexter said: ‘It is a traumatic time which we didn’t expect. Radical Saw Technology is intact and we have bought Skellingthorpe’s equipment and are looking to carry on where it left off in the new year.’
Skellingthorpe had been trading for 23 years and Mr Dexter said 98% of his customers had stayed loyal and had asked him to carry on. ‘This is what prompted me to buy the equipment back,’ he said.
‘On reflection, some of our really radical products are just too advanced for the sawmilling industry in this country.’
