Greenwoods Communications has gone into administration following the running up of debts to HMRC. On Thursday 300 staff were told they would lose their jobs and only 26 remain in order to wind down the company.
The firm, based in Coleshill, was a supplier of infrastructure to the mobile and IT communications businesses.
Warwickshire MP Dan Byles said.
"I had been working with the company at the tail end of last year and early this year in getting HMRC to defer payments and the like," "It seemed to be getting OK again and I thought they had turned a corner.
'Very sad' . Staff will be paid until the end of the month and will receive redundancy payments, he added.
I think it might of been a better idea to get a turnaround firm to try and negotiate with HMRC than the local MP??
In fact Ernst and Young had put the previous company into a pre pack administration in February 2013 and the buyers had bought the £2.98m debt from Lloyds Commercial Finance. The pre pack had saved 270 jobs at the time but it has transpired that they have lost a major contract with Cable and Wireless that put a strain on cashflow.
At its peak the firm had a turnover of £40m