Liquidators say all 27 staff will lose their jobs, although some will be kept on short term, while the company is wound up.

Rabeys Commercial Vehicles is part of the Garenne Construction Group, which was put into liquidation at the end of March.

Rabeys is based below the Vale Castle on Northside, and has operated for more than 45 years, employing 27 staff.

It provides commercial vehicles and fleet maintenance for many businesses, including the States of Guernsey.

In a statement, the liquidators, who are also in charge of the winding up of Garenne Construction, say that the business has become unsustainable:

"Whilst the company’s performance had improved in recent years, the impact of recent economic headwinds including major supply chain issues, rising energy and parts prices, coupled with rising interest rates, meant its financial position had declined irretrievably in recent months."

Geoff Jacobs, the managing director at Interpath Advisory and a joint liquidator, says:

“It is very disappointing that Rabeys, which has been an important part of the Garenne Group and a long-established Channel Islands business, is no longer able to continue to trade.

The joint liquidators are committed to ensuring that the optimum outcome for creditors is achieved and supporting the employees at what is a difficult time for all concerned.

Any parties who have an interest in the business or its assets should contact the liquidators in early course.”

The States of Guernsey says there's a high demand for the skills of the Rabeys workforce and States Works is actively recruiting vehicle technicians.

Rabeys has a Jersey branch, and talks are ongoing with potential investors in that business.