A MANAGING director says his firm is on the brink of going into administration, leaving 138 people out of work.

MD Mike Bugler is asking the Assembly to help his office furniture manufacturer Desk-Link, based at Tafarnaubach industrial estate, Tredegar.

The firm’s banks appointed MCR to look into reconstructing the firm last Tuesday.

They will become administrators if a purchaser can’t be found.

Mr Bugler said invoice discounters, who offer companies an advance on the amount owed by its customers, had been lending the firm less and less cash.

His firm is in a cash flow crisis and cannot pay its suppliers or staff.

The Argus reported 40 staff were laid off at the beginning of December, while other workers had not received their pay for November.

He said: "We can’t struggle on for much longer."

He added: "The management are working very hard to try and rescue Desk-Link’s activities.

"We’re looking for help from the Assembly and they are considering it."

He said reports that staff are locked out were incorrect.

The firm has 170 staff across the UK and has offices in the Wirral, Glasgow, Surrey and Wolverhampton.

Blaenau Gwent MP Dai Davies said the possibility of the job losses is devastating for the area: "Our thoughts and concerns are with all the employees from the management team to those on the shop floor."

He said AM Trish Law had written to Deputy First Minister Ieuan Wyn Jones to look into the possibility of financial help for potential buyers.

An Assembly spokesman said: "We are talking to a potential buyer of the Desk-Link business, and we are ready to do all that we can to preserve the business and the jobs it sustains at Tredegar."

A Blaenau Gwent council spokesman said they were working with the Assembly, Job Centre Plus, Careers Wales and Jobmatch to meet training needs and requirements, and would offer advice to workers in the event of any redundancies.