The Fife window manufacturer which collapsed earlier this month with the loss of 180 jobs had slumped into the red in its last full year of trading.
New accounts published at Companies House show Fife Joinery Manufacturing of Glenrothes, part of the Velux Group, plunged from a £650,000 profit in 2012 to an £88,000 loss last year.
The bombshell news that the company would stop making roof windows and components in the town because transportation costs to Europe are too high was broken earlier this month.
Production for Velux in Glenrothes, where it is one of the largest employers, is to end by next autumn, with distribution moving to the Midlands.
Velux UK managing director Keith Riddle maintained that prospects for Velux are good and said 30 jobs would be created in Glenrothes as part of an expansion of sales and marketing.
The company’s UK headquarters are also to remain in the town.
In terms of the future of manufacturing sister company Fife Joinery, Mr Riddle said an official consultation process is under way between the employees’ union the GMB and management to deal with the redundancy situation.
He continued: “We have been contacted by the Scottish Government who have offered support in terms of trying to find a buyer for the company in whole or in part.
“The workforce have considerable expertise in the assembly and moulding of wood products and the factory contains specialist machinery for the manufacture of wood products.
“We are to hold a meeting with the government to investigate the support that they can give and the options that this might lead to in terms of trying to find a new owner.”
One possibility is that the skills and expertise used for the manufacture of Velux windows at Glenrothes could be transferable for the production of timber frames for housebuilding.
Fife Joinery’s annual report and accounts for the year to December last year which have just been published show turnover increased 0.6% to £30.6 million.
Operating profit fell by more than £1m to £446,924, and among the reasons given for the slump were depreciation and amortisation costs reduction in assets’ value of more than £1m.
Interest and other charges more than doubled to £330,633, and pre-tax profit plummeted by nearly 95% to £70,515.
Overall, the profit of £645,616 made by the group in 2012 became a loss of £88,431 last year.
The strategic report published with the accounts said the company’s aim was to manufacture and deliver quality products and be an attractive and competitive supplier within the Velux Group.
The report dealt with competitive risk by explaining the Velux Group operates in competitive markets and the firm could be adversely affected by product innovations or technical advances by competitors.