Thirty-eight jobs have been axed after administrators were called in to Wolverhampton glass-maker Watsons Glass.

The firm collapsed after a reduction in customer orders over recent months led to cash flow difficulties.

Despite the cutbacks Mark Orton and Richard Philpott of KPMG Restructuring are keeping the business trading while they look for a buyer.

The £7 million turnover glass processing business, which is based at Old Heath Road, employed 70 staff before the administrators were called in.

Watsons, which has invested more than £3 million in its glass-processing production line over the past six years, specialises in fire-rated and high-security glass for the architectural, construction and interiors markets.

Mark Orton, restructuring partner at KPMG, said: “With the support of key trade customers, we are looking to continue trading the business whilst we hold discussions with potential purchasers.

“We remain optimistic that a going concern sale of the business can be achieved.”

The firm recently completed the supply and installation of over 250 energy-efficient windows and glazed doors as part of a major campus renovation programme at Sutton Coldfield College.

It last year received a visit by Pat McFadden, Labour MP for Wolverhampton South-east, and representatives from the Manufacturing Advisory Service - West Midlands (MAS-WM) who received a guided tour of the 65,000 sq ft plant.