An Ipswich business is set to cease manufacture in the autumn due to the worsening UK economy and the collapse of a possible deal with a foreign buyer.

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Alstons Cabinets has announced the majority of its 130 employees are likely to be made redundant on October 11.

However, bosses will continue to explore options to save the company despite its future looking bleak.

This update follows a 90 day consultation period during which the company has actively tried to find solutions to the financial problems of the family business.

However, an influx of low-priced foreign competitors has prevented Alstons Cabinets from being able to undercut other companies supplying the UK market.

This, combined with widespread stagnant sales of bedroom furniture has resulted in a worsening decline in sales.

Unless there is an dramatic increase in trade, production at the Leslie Road factory 
will be halted and the building will be mothballed.

The company revealed it will retain a skeleton staff to provide customer support.

John Alston, managing director of Alstons Cabinets, said: “Despite our best efforts the outlook for the factory remains bleak.

“We thought that we had a buyer for the business, but sadly despite initial interest it became clear that no sale was possible.”

He said: “We continue to look at all options, but in the circumstances felt it only right to tell staff now about where the business is.”

Alstons Upholstery in Colchester remains profitable and has contracts with a number of leading high street retailers.

This arm of the business will continue to manufacture and trade.

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5 comments

  • its had its day

    Report this comment

    barry chark

    Sunday, August 28, 2011

  • If its like my Alston bedroom furniture that was bought through a large Ipswich store then i'm not surprised. Falling apart after two years and thats with light use. Awful furniture

    Report this comment

    honeysucker

    Sunday, August 28, 2011

  • Yet another sad day for Ipswich.......Crane Fluid Systems Ransome Sims & Jefferies Ransome Rapier Bull Electric Delta Manganese Bronze Harris Pork. All gone with thousands of jobs lost.

    Report this comment

    Basin Digger

    Sunday, August 28, 2011

  • shame for all the workers .. ironic as some workers are foreign workers migrated here for work but put out of work by foreign imports ? how does that work

    Report this comment

    summy boy

    Sunday, August 28, 2011

  • A very sad day for Ipswich ,

    Report this comment

    richard procter

    Sunday, August 28, 2011

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