One of the Midlands' last carpet manufacturers, Carpets of Kidderminster, is in administration.
The firm, based in Stourport, Worcestershire, gave the news on its website and said later that 50 jobs were under threat as it restructures.
The company has been in existence for more than 70 years and 122 people work at the site.
"The management remain optimistic regarding the outlook for the company," the firm said in a statement.
"The current production team, recruited early this year, have identified areas where remedial action will ensure the company returns to profitability in the short term."
Managing Director David Watts said by taking the action they will have "a long and viable future."
The firm describes itself on its website as the UK's largest specialist woven carpet manufacturer.