Hardware distributor Avocet Hardware was placed in administration on January 23.
Avocet Hardware, which employs 150 people at its premises in Brighouse, West Yorks, has been placed in administration. Andrew Stoneman and Ben Wiles, both of the financial advisory and investment banking firm Duff & Phelps, have been appointed joint administrators of Avocet Hardware, and are continuing to trade the business while seeking a buyer.

Avocet was purchased by the current management team in a private equity-backed management buyout in November 2007, after a highly successful year with operating profit of £1.43m on sales of £40.4m. But sales dropped by 9% in 2008, sending the company to an operating loss of £692,000 - a loss which increased to nearly £1m the following year despite a 5% recovery in sales.

The company was established in 1978 and operates through three UK divisions: builders hardware, door and window hardware, and high-security locks. It operates from a freehold 90,000sq ft warehouse at Brighouse which adjoins a 33,000sq ft mill and 11,000sq ft showroom. In December 2011, Avocet sold its loss-making Chinese factory, which makes door and window hardware.

Andrew Stoneman said Avocet's financial performance in recent years was adversely impacted by losses from the Chinese operation, and by the insolvency of "a major customer" - assumed to be Focus DIY. Focus went under in 2011 owing Avocet a total of £430,000: the hardware division was owed £196,000, and the fixings division a further £235,000. Mr Stoneman said discussions are ongoing with a number of different parties who wish to acquire all or parts of the business.

Avocet director Ian Jones, who is also the largest shareholder with around 27% of the equity, added: "This has been a tough trading period as we have experienced a major contraction in the UK DIY market, compounded by the insolvency of one of our largest clients."