A Bradford-based direct-mailing company has gone into administration with a reported loss of 30 jobs and the threat of more to come if a buyer is not found.

Prospect Mailing Services of Wyke went into administration on Monday and on Tuesday a number of staff were told their jobs had gone. Remaining staff claim they have been told if a new owner is not found within two weeks the company will be finished.

Earlier this month Kevin Dunstall, of investment group Cogent B2B which owns Prospect, told the Telegraph & Argus he was working on a move to combine it with Laisterdyke's St Ives Direct, which Cogent recently bought in an £8 million deal.

He said a merger plan would be the only way to save Prospect after describing it as “a distressed business” – however, the Telegraph & Argus understands that merger has not yet been completed.

Staff from Prospect have been raising concerns since the deal was announced, claiming that wages were being delayed or withheld, something the company blamed on enforced changes to its accounting system.

Prospect Mailing is now in the hands of London-based administrator SFP group.

Mr Dunstall was not available for comment yesterday but in a previous interview with the T&A he talked about the proposed merger and said: “The aim is to give employment.

“If I wanted to cut overheads, I wouldn't be merging Prospect. Without this merger, Prospect just wouldn't survive.”

Mr Dunstall had also said pay issues were being dealt with straightaway, but one worried employee who rang the T&A yesterday said there were many people who had still not been paid.

“People were in tears yesterday. People’s names were called out, about 30 of them, and they were told to go to the canteen where they were told their jobs were gone. They had to empty their lockers then and there and were escorted off the premises.”

Another man said: “Lots are worried sick about money. They haven't been paid but they've got bills mounting up and are into arrears. They were told if they are owed money they’ll have to claim it back from the Government.”

Another worker who contacted the T&A said: “We’ve been told there’s two weeks to find a new buyer. If they don’t then the company is gone. We feel Prospect is just being asset-stripped.”