Merchant City Distributors Limited was based in the Kelvin Industrial Estate, supplying and installing kitchen appliances across Scotland for 25 years. Directors said the company had been hit by “detrimental supply chain issues” and a challenging trading environment that left no viable future for the firm.

The supplier, distributor and installer of gas and electrical products appointed James Stephen and Ben Peterson of BDO as joint administrators.

In a statement, the administrators confirmed that the business had stopped trading before their appointment. They said: “Following detrimental supply chain issues, the directors concluded there was no viable future for the business and ceased to trade. Consequently, they took the difficult decision to appoint the joint administrators, with 18 employees subsequently being made redundant.”

Mr Stephen added that wider economic pressures had played a significant role in the company’s downfall. “The challenging business environment impacted the company’s ability to trade and the directors unfortunately saw administration as the only option. Our focus now is on processing employee claims and realising the company assets for the benefit of creditors.”