According to media reports a knitwear manufacturer, which has been trading in Leicester for more than 50 years, has entered administration after a number of its UK retail customers began to source products from overseas.

According insidermedia.com three hours ago, B.S. Attwall & Co, which supplied fashion knitwear to retailers across the UK and Europe and was one of the biggest names in Leicester knitting in the last 30 years, has ceased trading prior to the appointment of Mazars insolvency specialists Scott Bevan and Simon Chandler on 21 July 2015, leading to the loss of 48 jobs.

According to the report, Paul Maloney, restructuring services senior manager at Mazars, said the company had been "forced out of business" after losing contracts with the likes of Tesco and New Look to overseas manufacturers.

However, industry insiders say that Tesco in fact dropped the manufacturer over a year ago leaving the company in a difficult position. It is believed that the directors of the company decided to cease trading shortly thereafter to avoid further difficulties.

"Unfortunately, 48 jobs at BS Attwall have been lost," Maloney added. "We will not be looking for buyers for the company as it had already ceased trading before Mazars was appointed as administrators."

In the past BS Attwall had been profitable, generating pre-tax profit of £975,500 in the period from 1 August 2011 to 31 December 2012. Sales also reached £9.7m, the report said. But in the year to 31 December 2013, the company turned over £6.2m and slipped to a pre-tax loss of £177,839, it added.

The closure of B.S. Attwall, a stalwart of the Leicester knitting trade, is bad news for the city of Leicester and for the numerous small manufacturers, which sub-contract to the company and is not good news for the made in the UK movement.