Administrators from Baker Tilly Restructuring and Recovery LLP are currently working with a handful of staff to complete the firm’s outstanding contracts.
New City Flooring Ltd was established in Sunderland in 1988.
It started off in the domestic but quickly expanded into commercial work and had major clients including Barclays Bank, Lloyds TSB and Monsoon.
Administrators Mark Ranson and Phil Pierce said the company had suffered from reduced gross margins over a sustained period of time which caused irreparable trading losses.
Ranson said: “It is a real shame that Directors of such an established company have had to make the decision that they are unable to continue trading.
“The issues faced by New City Flooring Ltd were further exasperated by the general economic climate and increasing competition and are unfortunately symptomatic of the pressures that businesses within this sector continue to experience.”
New City employed 22 full and part time staff, along with 16 subcontractors.
All but eight staff were made redundant prior to the appointment of administrators.