Beever & Struthers has been appointed administrator to Colourclad after the business "fell victim to fierce competition for contracts in the construction sector".
All 20 staff at the industrial cladding specialist based on Palatine Industrial Estate in Stockton Heath were made redundant when the business proposed administration on 12 April 2012.
Charles MacMillan, partner and head of corporate recovery at Manchester-based accountants Beever & Struthers and administrator to Colourclad, said the business suffered from the downturn affecting the construction sector as a whole and in particular from increasing pressure on profit margins.
Colourclad wrote off an estimated £350,000 when Wrexham-based civil engineering and maintenance contract firm Barnhill Construction recently entered administration itself.
MacMillan added: "Over the past couple of years competition for work in construction has grown increasingly fierce and Colourclad had to adapt by quoting for larger contracts but at increasingly regressive margins. The business had previously concentrated on smaller refurbishment projects but the amount of this work was also badly affected by the onset of the economic downturn.
"I am proactively seeking a buyer for Colourclad but the overly competitive nature of this sector means that sadly, yet another business is likely to fail. All the employees were made redundant because there is no profitable work in progress to complete."