Administrators are due to be appointed soon at leading kitchen and bedroom furniture manufacturing group the Homeform Group Ltd.
A statement from Manchester-based Homeform Group said the business, which includes Kitchens Direct, Moben Kitchens, Sharps Bedrooms and Home Offices and Dolphin Bathrooms, currently remained under the control of directors.
But it has filed with the court a notice of intention to appoint an administrator, with the process taking up to 10 working days.
“The directors are close to securing a deal that will safeguard the future of the Sharps (Bedrooms) and Kitchen Direct businesses and have mandated advisers to seek a sale of the Moben and Dolphin brands,” said the statement.
“Further information will be provided in due course,” it added.
Up to 1,300 staff are at risk, including 350 staff working at the Sharps Bedrooms factory on Bilston’s Springvale Estate in Wolverhampton, plus a further 1,500 fitters.
Homeform was bought by US investment company Sun Capital in 2007 shortly before the economic crisis.
Meanwhile, it has emerged that another kitchen manufacturer Magnet has plans to cut more jobs.
The Darlington-based firm, owned by Nobia, has cut jobs in the past two years and is now engaged in consultation with staff.
Homeform brands operate from 160 showrooms while Magnet has 197 branches.