Historic carpet maker Axminster is to go into administration in a move putting 400 jobs at risk.
The Devon-based company, which dates back 250 years, said the decision will provide the company and its creditors with time to explore various rescue options.
Director Joshua Dutfield said: “Trading has been difficult and the management has been working with key suppliers, creditors and the lenders in an attempt to resolve the company's financial difficulties.
“We continue to be committed to working to achieve the best possible outcome for all concerned and most importantly the staff and suppliers.”
All the company's 400 manufacturing and office staff are based in the Devon town of Axminster, where Thomas Whitty began making carpets in 1755.
The original Axminster carpet was laid in Brighton Pavilion as well as bought by King George III and Queen Charlotte, who visited the factory. After a fire halted production, carpet manufacturing did not return to the town until 1937.
A statement from Axminster today confirmed the notice of intention to appoint Duff & Phelps as administrators.
It said: "The notice was filed in order to provide the company and its creditors with a moratorium period during which the various rescue options being explored can continue."