Nylatex, one of the UK's leading manufacturers of fabrics for sportswear and intimate apparel, has ceased trading with the loss of 80 jobs, administrators confirmed to just-style today (11 February).

The company, which was previously part of the Courtaulds Textile Group, pulled the plug on its operations earlier this month after being hit by "a significant downturn" in demand due to the recession and its main customers cutting back orders.

"Despite the best efforts of its management team, the business could not trade out of the impact of the current recession," explained Dilip Dattani of administrators RSM Tenon.

This is despite an injection of more than GBP9m into the business over the past two years.

"I understand that the board was in the course of taking steps to address the funding shortfall," Dattani added.

But he said the downsizing of a major order meant there were "insufficient current and forward orders to continue to employ all the staff." 

"The cost base of the business was unsustainable and the likely level of losses could not be stemmed."

Long Eaton based Nylatex specialised in warp and weft knitted, stretch and non-stretch fabrics and in the past supplied material to make shirts for England's World Cup football squad.

The company was originally called Penn Nyla and was part of Courtaulds International Fabrics before being acquired by Sara Lee in 2000.

Penn Nyla was subsequently sold to the UK Investment group Harris Watson in August 2001 and in December 2003 the company was the subject of a management buyout and changed its name to Nylatex.