Axminster Carpets has collapsed into administration after weeks of trying to secure a rescue deal.
The 265-year-old firm, which supplied carpets to the Royal Family, has appointed Duff and Phelps as administrators.
Up to eighty employees have been made redundant as a result as the company goes into administration for the second time in seven years.
The local and County Councils have both said they'll offer advice to workers faced with redundancy.
Duff and Phelps have also said a small number of employees will continue to work through the Company’s order book.
Despite a number of expressions of interest no acceptable offer for the core carpet business has been received, leaving no option but to appoint administrators while the remaining options are explored.