All 168 employees of a Preston-based building company are set to lose their jobs.
Taylor Wimpey, which owns Prestoplan, based in Four Oaks Road, Walton Summit, made the announcement to staff on Wednesday afternoon.
The company, which also has a sales and project management office at Quedgeley, Gloucestershire, makes timber frames for its parent company.
A Taylor Wimpey spokesman said: “A formal consultation process has commenced with all Prestoplan employees and employee representatives.
“Prestoplan will continue to honour all of its existing contractual obligations.
“Throughout this process our priorities will remain the welfare of all employees and the continued fulfilment of our clients’ orders.”
No reason for the job cuts has been given, or information about the company’s future.
A worker said: “This came completely out of the blue. We have been given notice that our jobs are going. It’s a shock.”
Prestoplan began operating in 1967 and had been based at Stanley Street industrial estate until 1991.
According to the latest annual accounts submitted for the year to December 31, 2012, Prestoplan had liaibilities of £7.1m and assets of £5.6m.
Cash at the bank totalled £99,000, leaving the company with a net worth of minus £1.4m.
Babs Murphy, chief executive of the North & Western Lancashire Chamber of Commerce, said it was a “dark day for the local economy.
She added: “Prestoplan has been a real asset to the local economy for a number of years. It has always been a particularly effective manufacturer with a strong workforce and it is obviously disappointing that it has bowed to the rigours of global trade.”