SIXTY people have been made redundant after a warehousing and distribution firm went into administration.

Staff at Darwen’s East Lancashire Warehousing were laid off after administrators were called in.

The company, which as recently as last year turned over £5.6million, has ceased trading and assets are set to be sold off to claw back money for creditors.

Administrators from Manchester-based KPMG said the firm’s reliance on large contracts led to its downfall.

KPMG associate partner Paul Flint said: “East Lancashire Warehousing Company Limited has been serving customers in the North West and nationally for more than 90 years.

“Sadly, the loss of key contracts has forced the closure of the business with the loss of 60 jobs.

“We are now seeking buyers for the assets.”

It is understood that KPMG was called in by the firm’s bank.

Five staff have been kept on by to help with the winding up.

The company, of Lower Eccleshill Road, Eccleshill, was founded by the Maudsley family.

The firm’s current base has 125,000 sq ft of warehouse space, as well as a fleet or haulage vehicles for deliveries.

Managing director Ian Maudsley was today unavailable for comment.

The collapse of the company is another blow in Blackburn and Darwen in a matter of days.

Last week, engineering firm Warwick and Bailey announced it was closing its Blackburn site, in Mill Hill, and switching work to the North East, affecting 20 workers.