Kitchens distributor Mark Two — which supplied and installed kitchens on behalf of Tesco until the grocer’s recent decision to exit the sector — has collapsed into administration.

More than 330 people have been made redundant at the Bolton business, with administrator Duff & Phelps cutting 196 staff on appointment to follow the 137 who lost their jobs last month.

That was because management decided to shut down its Mark Two Home division when the supplier’s relationship with Tesco ended, saying it was no longer viable.

Tesco decided to exit the kitchen and bathroom market after suggesting that Mark Two was unable to deliver the service its customers expected, something disputed by management at Mark Two at the time. Tesco says it has offered full refunds to customers with outstanding deposits. A full statement is on the Tesco Kitchens website.

Mark Two lost £3.1m before tax on sales of £41m in 2013. In the middle of last year it was sold to Burnley headquartered Ultra Finishing, a circa £60m distributor majoring in bathroom products.

Duff & Phelps has retained 17 employees.