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.

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.