ONE of the city’s leading independent plumbing and bathroom firms has gone into administration.

Orillo, which had a showroom in Foundry Street, Worcester, as well as branches in Evesham and Malvern and a DIY outlet in Droitwich, shut on Thursday afternoon after staff were told the news.

Derek White, the company chairman who set up the business in 1978, said it was “a sad day” but assured all paying customers their purchases would be honoured and that “we haven’t run away from our liabilities.”

He ran the business, which sold heating, bathroom and plumbing products, with his daughter Sheryl Farmer, managing director.

Mr White said £200,000 was owed to the company, leading to its closure.

“Trading conditions have been tough but the reason for the closure was people owe us £200,000 and these are Worcester, Malvern and Evesham traders, some household names,” he said.

“All staff employment was suspended on Friday, all staff have been paid in full and they’ve all received their Christmas Club – their savings.

“Nobody has been left owed any money.”

Mr White said a Worcester company was dealing with the administration, which he would be leading, saying there were “several parties interested in buying the firm at the moment. I’ll know more on Monday”.

However, the 73-year-old master plumber said he would be stepping aside from the business and the name Orillo would not continue.

He also assured paying customers they “will receive their goods”, saying: “We’ve done everything by the book. Customers will know what’s happening on Monday.”

Mr White said the worst thing had been telling his 17 staff the news.

“That was the saddest thing, being up front with the staff.

“That was very hard – then making sure the customers were taken care of.

“Some of the staff had actually offered to work for nothing next week.”

Six weeks ago, the firm’s Redditch outlet shut because “92 per cent of customers hadn’t paid their bills”.

Keith Rayment, assistant branch manager at Unipart, opposite Orillo’s Worcester outlet, said the news had come as “a shock”.

Another manager of a DIY outlet feared trade stores around Foundry Street could suffer as Orillo was “a big customer” who sent business their way.

“It’s a shame, they’ve been here a long time,” he said.