More than 70 jobs have been lost after administrators admitted defeat in their bid to save a Powys car parts firm.

Floform, of Henfaes Lane, Welshpool, has ceased trading with immediate effect with the loss of 74 jobs. Six members of staff are being kept on to help with the administration process to close the firm which was established in 1959.

Bosses at the company said the loss of key customers is to blame and continuing to trade was no longer a viable option.

Zolfo Cooper, joint administrators of the company, also blamed the slowdown in the motor industry.

Peter Holder, Zolfo Cooper partner, said: “Much has been made of the marked slowdown in the automotive sector and we’re clearly seeing the impact of these unprecedented market conditions on freight and commercial vehicles. 

“Those pressures have led many of Floform’s customers to significantly reduce their production schedules, resulting in a liquidity crisis for this business. 

“Since our appointment, we have worked with all stakeholders in an attempt to secure a future for the business, but when key customer support was no longer available, the business was simply unsustainable.

“We have informed each of the affected employees and their union of the situation and are grateful for their dedication and professionalism.”

The company supplied a number of vehicle manufacturers, such as Volvo trucks in Sweden, with parts such as diesel injector sleeves, spark plug electrodes and other specialist fixings.

Mick Bates, Montgomeryshire AM, said the closure was a “devastating blow” to Welshpool.

“Most of the workers at Floform are local to Welshpool, so this is the equivalent of a company in a major city like Cardiff laying off thousands of people in one day,” he said.

“I am meeting with the union today and then hopefully the company tomorrow, because it is so important to get these workers new jobs and help their families as much as we can.”

Robert Robinson, Welshpool Town Council clerk, said: “It is terribly sad for all the workers who have lost their jobs and the site, which is very large, is custom made for them, so it could be empty for a very long time.”

By Andrew Morris