Cheshire-based dairy products trader Murray Vernon has called in the administrators, after struggling to cope with tough trading conditions and staffing problems.

The company, which sells dairy products in the UK and abroad, is continuing to trade but may eventually be wound down by administrators from PricewaterhouseCoopers.

In a statement, the company said existing orders would be filled and trading would continue, to realise the assets for creditors.

Director Paul Vernon said: "Following the death of founder Tony Vernon, the downturn in the market and the loss of key staff, the long-term future of the company has become untenable."

A spokesman for cheese-maker McLelland Lactalis said its Stranraer creamery would continue to sell milk ingredients through Murray Vernon. He denied McLelland was a major creditor.

The last financial statement from Murray Vernon filed at Companies House in October 2004 showed profits falling 10% to 197,000.