KPMG was appointed provisional liquidator to the 150-year-old company on 29 December, with the firm bought by managing director Alistair Marr the next day, and renamed Nimmos.

"It was a case of sell it or close it," said a KPMG spokesman, who blamed the "market conditions and competition" for the firm's demise.

William Nimmo's last accounts showed sales of 4.2m in 2003, with a pre-tax loss of 174,000. This was compared to a pre-tax profit of 60,000 on sales of 5m in 2002.

The new firm took on 35 of the 50 staff employed by the old company.

"Given the time scale [staff were due back on 4 January] and the situation with employees, the managing director offered to buy it," said the spokeswoman.