Cramlington Textiles, which makes bed linen, curtains and home furnishings, was put into the hands of Begbies Traynor, an administrator, after its cash-flow was squeezed by the winter slump in consumer spending.
The firm, which has been making losses since 1995, was also hit by a flood of cheap imports encouraged by the strength of the pound.
The group was already in the midst of a big restructuring exercise at the end of last year. But the costs of the restructuring became unmanageable when cash-flow was squeezed by the retail slump.
Ron Robinson, the administrator, said it was inevitable that some redundancies would be necessary. But he said there was still a good hope that the business itself could be saved.
The company was formerly owned by the Lonrho conglomerate. Known as Brentford Nylons, it was a spinner, weaver, dyer, printer and retailer of fabrics and linens. Woodrow Wilson Investments, a private investment firm, bought the business from Lonrho in 1997.Reuse content