A TOTAL of 500 jobs are at risk at workplace interiors firm Eastlake after the company fell into the hands of administrators.
The East Kilbride-based business yesterday admitted three of its four subsidiaries had become insolvent due to customers cutting back on "discretionary spend".
Eastlake, which is understood to employ around 180 staff north of the Border, previousl
y supplied major companies including BP, Scottish Media Group and Aegon.
No jobs cuts have been announced at present and the administrators, PricewaterhouseCoopers, said they hoped to sell the business as a going concern.
A statement published yesterday by the administrator said: "The insolvencies were triggered by cash flow problems caused by customers delaying discretionary spend as a result of the general economic downturn."
Bruce Cartwright, joint administrator and head of business recovery services at PricewaterhouseCoopers in Scotland, added:
"With the support of key customers, we hope to trade the business for a period of time whilst a buyer is sought."
Burdew Contract Furniture, which provided bespoke office furniture, and office design firms Eastlake Commercial Interiors and CM3 are the firm's subsidiaries which have been taken into administration.
The company, which was established in 1975 as a small family run office supplies group, has rapidly expanded in recent years, growing to a turnover of around £70 million a year.
Last year it merged with Work Inc Group, its biggest competitor, in an £8m deal funded by Royal Bank of Scotland.
In 2006, it expanded into Northern Ireland, snapping up Calvert Morgan for £2m.
Eastlake trades from offices in East Kilbride, Belfast, Wakefield, London, Manchester, Cardiff and Newcastle.
The group's subsidiary facilities management company Work Facilities is not in administration.
