Car component manufacturer DMI (UK) Ltd has entered administration, resulting in the loss of 23 jobs.
The business, based in North Shields, North Tyneside, operated by treating and reconditioning components for luxury car brands such as Rolls Royce.
Ian Kings and Steven Ross from Baker Tilly were appointed as joint administrators on 8 January 2014, following “difficulties in generating business,” which led to a decline in work and an increase in financial losses for the company over the past two years.
The administrators are currently seeking a buyer for the business.
The spokesman for DMI (UK) said: “We had big customers who were buying quite a lot from us but that then fell to around 20% of what we had anticipated and budgeted for.
“We brought some work back in but that didn’t achieve anything like we were hoping and it actually exacerbated matters, and we stopped that a few months ago.
“With losses mounting we got to a point where we couldn’t survive any longer. Even with the deepest of pockets you cannot carry on with big losses forever.”