Stiff competition from larger rivals has forced Brays fine furniture to close its doors for the last time.

The Manchester-based furniture firm has fallen into liquidation with Begbies Traynor appointed to oversee the process.

Jason Greenhalgh, a partner at Begbies Traynor, said: 'There are a number of factors that have contributed to the unfortunate situation Bray's now finds itself in, with consumers often using the local stores to window shop but will ultimately make their purchase online or from larger retailers that can offer bigger discounts.

'Regrettably we may see more and more of this type of retailer suffering because of competition from the brand names who perhaps have larger marketing budgets and a significant presence on TV, with many also having prime locations in out of town shopping centres.'

The demise of the furniture company contributed to what was a bad year for business, as the number of retailers falling into administration over 2012 rose by 6% on 2011 figures. According to research by Deloitte reveals that 194 companies became insolvent over the year, though in the final quarter of the year the numbers marginally improved on the same period for the previous year.

Lee Manning, restructuring services partner at Deloitte, said: 'These figures are a stark reminder of the difficulties which continue to face the high street. Constrained household budgets and the structural challenges facing the sector mean it is certain that we will see further distress in 2013. Christmas trading appears to have been reasonable, though not spectacular and not enough to prevent insolvencies in the first quarter of 2013.'