Fifty-seven jobs have been lost at Wolverhampton-based Chamois Furnishings, which supplied housing associations, private developers and local authorities with environmentally-friendly kitchens.
The firm is now in the hands of administrator Begbies Traynor which has disposed of the goodwill and customer list to an unnamed rival firm.
At its peak two years ago, Chamois Furnishings employed 140 people and was hailed as a successful green company making and selling recycled timber kitchens.
Chamois Furnishings is owed nearly £200,000 by Rok and was also dealt a blow by the collapse of Connaught earlier this year.
Chamois Furnishings founder and former managing director Andrew Jones-Dutt said there were a number of reasons his once thriving business had come to a “sad end”.
He told the Birmingham Post : “There is stagnation in the construction sector and pressure on materials.
“The action we tried to take to reduce labour costs was greatly impeded by current employment laws.
“We could not move quickly enough due to the bureaucracy.
“And the implications of the demise of Connaught destroyed confidence in the sector and I have had several small contractors go bust on me already – when it went down, it took out companies which had an effect on me. It’s like a row of dominoes.”