Administrators are on site at Christian book distribution business Trust Media after a recent plummet in turnover.
The Carlisle-based business is likely to make around 10 jobs redundant immediately after administrators from Glasgow office of Scott Moncrieff came in to look at the company’s options going forward, according to the Carlisle News & Star.
The business will continue to trade in a “reduced capacity” the meantime, however.
In a statement, a TMD spokeswoman said bringing distribution and wholesale elements of its business “in house” led to the current difficulties. “This structural change was compounded by continued contraction in the trade as a whole leaving an organisation with the scale, infrastructure and cost base of TMD with no other option but to look at alternative business models,” the statement said. “Whilst the development of our card and gift and distribution functions was encouraging it could not (in the time required) replace the rapidly declining wholesale revenue streams and we therefore began exploring alternative restructuring options at the close of 2013.”
The statement added that the board had invested “considerable personal resource in the business” over the past two years and it expressed gratitude to “loyal and dedicated” staff who strived to make the business work in a very challenging environment.
Stewart MacDonald, administrator from Scott-Moncrieff, said he would continue to explore the possibility of future trading options for the business and infrastructure.
“In the meantime, the business will continue to operate in a reduced capacity to facilitate the distribution of certain product lines,” he said.
Two years ago, the Carlisle part of the distribution business was bought by Ken Munroe in a management buy out and shortly afterwards around 40 people were made redundant from the company, which was previously called Send The Light Distribution (STL).