A MAJOR furniture manufacturer near Glasgow has gone into receivership leaving customers fearing orders will not be delivered and deposits lost.

The double warning came as attempts were being made to find a buyer for R&M Deluxe Group, which has its HQ at Hillington where it also has a flagship Instyle Furniture store.

Billed as 'Britain's biggest direct sofa retailer' it had a range of more than 300 exclusively designed settees.

But the recent economic climate has seen orders plummet while debts have soared. The losses have not been disclosed but are believed to be significant.

Company executives abandoned their fight for survival by placing the business in voluntary receivership last Friday, shortly after axing their only Instyle Furniture store in Glasgow, at London Road, Tollcross.

Another store in Aberdeen has also been shut down.

Joint receivers Blair Nimmo and Gary Fraser of accountancy firm KPMG have made seven store workers redundant and yesterday another 10 were laid off in an bid to slash overheads. The two remaining stores – at Hillington in Renfrewshire and Uddingston, South Lanarkshire – continue to trade though there are fears for the remaining 28 staff.

Production at Hillington will continue while attempts are made to find a buyer.

Although the business is being sold as a going concern, existing customers could suffer losses. Those who have paid cash deposits and others who had paid the full price for sofas which are yet to be delivered could lose out.

A KPMG spokesman admitted: "KPMG are unable to provide any information regarding customer orders or deposits at this stage.

"Each case will be looked at individually as more information regarding the business's operations become clear."

Blair Nimmo said: "The combination of the business' reputation, strong brand name and property assets presents a very good opportunity for prospective buyers."

gordon.thomson@ eveningtimes.co.uk