Rowecord went into administration in April and its debts were estimated last month at £24m – including £15.6m owed to trade creditors – by Grant Thornton.

But now the joint administrator Alistair Wardell of Grant Thornton has confirmed to the BBC that debts could be up to “twice as much”.

The rise comes as the administrator failed to find a buyer for the firm and other claims and breaches of agreements with firms emerged.

A creditors’ meeting was held yesterday.

The BBC said that many of those attending had already “written-off” their money.

A planned online auction of Rowecord’s machinery was also cancelled after a foreign buyer snapped up all the firm’s equipment and vehicles in a single deal.