The Witham, Essex-based company, formerly Celloglas Stock, ceased trading last Friday (13 November) with 20 staff made redundant.

SPS is consulting with insolvency practitioner B&C Associates, which is expected to be appointed at a meeting of creditors on 8 December.

According to Paul Whiter, manager of B&C Associates, the closure was a knock-on effect from within the industry.

He said: "One of their customers went into administration and left them with a big debt. Usually, at this time of year they would be really busy, but it just hasn't happened.

"It’s a shame, because it is a good company and they still have orders coming in. The bank was unable to provide the funds and the company just couldn't carry on."

SPS was formerly a partner to Celloglas and formed a joint business with Celloglas subsidiary Five Star. The company was in the process of separating from Celloglas when the latter went into administration in early 2009.