Clothing firm Punjab Textiles, of Leicester, collapses owing £1m to 70 creditors
A family-run clothing business in Leicester has gone into liquidation with debts of £1.1 million.
Punjab Textiles, which sold clothing and fabrics from its two shops in Haddon Street and Buxton Street, in Spinney Hills, was hit by a slump in trade.
It has closed both of its stores, which employed eight people in total.
The company has 70 creditors including trade customers, HMRC and its bank but is not thought to owe any money to consumers.
Eddie Kerr, a partner at accountancy firm PKF in Charles Street, was appointed liquidator by the owner of Punjab Textiles, Yunis Malik, on Tuesday.
Mr Kerr said: "It was down to terrible trading conditions and a number of competitors setting up nearby.
"Trade dropped significantly to the point where the director had to take steps to put the company into liquidation.
"Our objective now is to release as much of the company's assets as possible through stock and so on to see how much money we can get back."