Olympia Furniture, a Manchester-based furniture manufacturer which supplies Argos and Asda, has gone into administration putting 135 jobs at risk.

The company has appointed joint administrators, Ben Woolrych and David Thornhilll, partners at FRP Advisory LLP.

Despite receiving a funding boost in November 2011 when turnaround specialist SKG Capital bought the furniture manufacturer, the company never really recovered from the loss of a lucrative IKEA contract in early 2011.

Based in Ashton under Lyne, near Manchester, Olympia specialises in the design, manufacture and assembly of bespoke 'made to order' upholstered goods.

Ben Woolrych, joint administrator and partner at FRP Advisory, said: 'We were engaged by the directors of Olympia Furniture to seek a sale of the business in order to maximise the position for creditors and the 135 employees.

'Unfortunately, however, it has not been possible to secure a sale to date and the company was placed into administration. We are continuing to market the business for sale and liaise with customers whilst we assess the ability to continue trading within administration.'