A Pinchbeck furniture manufacturer whose customers included Wimbledon and the late Queen Mother has stopped production.
Plant, machinery and tools at Lloyd Loom of Spalding, which produced luxury, hand-made chairs and tables, was stripped out at its factory in Wardentree Lane before Christmas.
A number of workers claimed they were sent emails which said they were to be laid off until the start of February and some of them claimed not to have been paid for at least seven weeks.
One worker, who asked not to be named, said: “I felt trapped because if I’d have left my job, I wouldn’t have got any benefits as I’d have left my job voluntarily.
“So I stayed and worked for nothing as I’m aged in my 60s, unlike the rest of workers who were at an age where they could have found another job.
“To be short of money is worse than a nightmare and without my relatives, I don’t know where I’d be.”
For the past two years, Lloyd Loom of Spalding has been run by Anthony Draxler from a factory owned by businessman Mike Walker.
In a statement to BBC TV’s Look North programme, Mr Draxler confirmed that plant and machinery from the Pinchbeck factory had been shipped to Romania because of “equipment problems” at the Pinchbeck site.
Mr Draxler said: “If we have to make employees redundant because they can’t find another suitable site, they will be taken care of.” Mr Draxler also claimed to be in dispute with Mr Walker, who was managing director of the furniture maker from 1999 until 2008.
But Mr Walker denied any responsibility for Lloyd Loom of Spalding’s demise and instead claimed that he was owed money for outstanding rent.
“In my opinion, it’s a tragic situation and, in terms of priority, the first one is the staff,” Mr Walker said.
“Pressure has to be put on the administrators to wind up the company, which once was a great British furniture manufacturer whose history stretches back to 1922.”
“In the meantime, it’s the end for Lloyd Loom of Spalding.”
The Guardian contacted Mr Draxler for comment but he had not responded by the time of going to press.