Coilcolor: Newport Ikea supplier calls in administrators
A company that supplies Ikea and Easyjet is going into administration, with 50 people being made redundant.
Managing director of Coilcolor in Newport, Dean Proctor, said an administrator would be appointed on Tuesday.
Mr Proctor said flooding at the factory in November cost £3.7m in machinery and lost work.
He said it would be "a difficult day" for staff, but was looking for a buyer for the site.
Worker Roger Thomas said: "The feeling is quite low at the moment - it's a bit of a formality, we all knew what was going to happen.
"We've been let down by both the company and the Welsh Government."
Coilcolor, which produces blue and orange panelling for Ikea and Easyjet, flooded in November 2016.
It provides products for B&Q, Costa and Porsche and worked on Google's new headquarters in Holland.
Mr Proctor said the bank reduced Coilcolor's overdraft a few weeks ago and the firm was left struggling to pay the bills.
"I'll be talking to staff this morning and by the end of the day we'll be in administration," he added.
"I spoke to them yesterday and they all know what's coming. It was a very viable business if we didn't have this flood."
Newport West AM Jayne Bryant said: "This is very disappointing news and my thoughts are with those who have lost their jobs and their families.
"I have spoken to the cabinet secretary about this and sought assurances that the Welsh Government will do everything within their power to support staff through this very difficult time."
Mr Proctor said last week that a two-month wait for a payment from the Welsh Government was "diabolical", but ministers said no money was promised.
He claims the flooding came from Welsh Government land next to his business, despite him raising concerns about drainage in 2015.
But the Welsh Government said it had not received any official claim from Coilcolor or its insurers.
The Welsh Government arranged a loan for Coilcolor through Finance Wales, but the company criticised the 11% interest rate.
A Welsh Government spokesman said: "Officials will continue to stay in contact with the company and stand ready to offer every assistance within our powers to support the company and employees."
South Wales East Conservative AM Mohammad Asghar said: "This is hugely disappointing news for staff at Coilcolor and you have to question the Welsh Government's response to this crisis, which has done little to address concerns or to prevent the worst from happening.
"It also highlights fundamental concerns that I have about Finance Wales, which was only willing to offer financial support to the firm at an extortionate lending rate of 11%."