Benjamin Wiles, Geoff Bouchier and David Whitehouse of Duff & Phelps have been appointed as joint administrators to the Devon carpet maker and supplier Axminster.

The 250 year old company, which supplies the Royal Family as well as hotels and homes around the world, said the tough economic climate was to blame for its financial difficulties.

Joshua Dutfield, Axminster Carpets company director said: 'Trading has been difficult and the management has been working with key suppliers, creditors and the lenders in an attempt to resolve the company's financial difficulties. We continue to be committed to working to achieve the best possible outcome for all concerned and most importantly the staff and suppliers.'

Axminster has woollen mills and production facilities in Devon and is one of the few 'fleece to floor' carpet suppliers remaining in the UK. Founded in 1755 and granted a five-year royal warrant in January 2012, its designs are sold in John Lewis and Carpetright as well as specialist commissions for historic houses.

The company, which employs some 450 staff, said it will continue to trade while it explores all potential rescue options.