ENA Shaw staff members agreed to working reduced working hours ahead of the firm going into administration last week, according to a trade union.
GMB Union say the historic furnishing manufacturing company, which employs 167 people at its Lea Green factory and Duke Street showroom, cut working hours from 38 to 20 "a few weeks ago without notice".
The decision to appoint administrators was made by directors after suffering difficult trading conditions.
READ > Huge community clean up to take place after shocking picture of swans in filthy canal
Speaking about when workers discovered Ena Shaw went into administration, GMB organiser George Patterson said: "This was the sad news our members have been dreading since the company cut working hours from 38 to 20 a few weeks ago without notice.
“The hours had just been reinstated before the company informed staff that they had no choice but take the business into administration.
“Over the years the loyal workforce has accepted a reduction in hours and changes to their terms and conditions to help the business through tough times."
The company's original store was opened by machinist Ena Shaw in 1932 on Corporation Street, where she made loose covers and curtains with fabrics that customers supplied themselves.
Ena continued throughout the Second World War, selling mainly blackout curtains in exchange for ration coupons.
In recent years the company hit the headlines after making curtains for accommodation at London 2012’s Olympic Village.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here