ITV Channel's Clare Burton speaks to one customer who lost out
Jersey Double Glazing Limited has stopped trading, leaving customers and other companies significantly out of pocket.
ITV News understands that they owe more than £250,000 to 53 creditors.
The company fitted windows, doors and conservatories before it officially went into liquidation on 14 February, according to the Jersey Gazette.
Nick Alderson says he spent £6,000 on new doors from Jersey Double Glazing to create a dream family home but it turned into a nightmare when the firm went under.
"It's a little bit heartbreaking when we had that email saying we're not going to get a penny back," he explained.
The liquidators then got in touch to say two of the doors were already on island and could be collected - but they would still need to pay someone else to get them fitted.
Carl Walker, the Chairman of Jersey's Consumer Council, says he is concerned about customers losing out:
"We're hearing that there are quite a lot of islanders who had put deposits down for double glazing in their homes who are now sadly not going to get that product," he explained.
"Sadly in these situations, it's often the consumer who is bottom of the list when it comes to getting their money back."
Mr Walker is advising anyone who has been affected to contact the local insolvency firm Begbies Traynor to 'get in the queue' for money as the company is liquidated.
Jersey Double Glazing has not responded to ITV News's requests for comment.
The major Jersey building contractor Camerons have also recently stopped trading with the Construction Council warning that more local firms could be forced out of business by the spiralling costs of labour and materials.
"Certainly, you can foresee conditions in the future where circumstances of Camerons and affordable glazing are replicated with other companies," Simon Matthews from the group explained.
"A lot of the projects that contractors and subcontractors are working on have fixed prices and they don't move with fluctuations.
"So in those instances, you get your profits and margins squeezed and that's what leads to issues with cash flow and affordability."
Trading Standards urges customers to protect themselves by paying a small, reasonable deposit and then agreeing to pay the rest as the work progresses. Using a UK credit card can also help consumers to get their money back if a business folds.