The company, which trades under the name InStyle Furniture, has four Scottish outlets and employed 45 people
Furniture maker and upholsterer R&M Deluxe Group has been placed into receivership.
Gary Fraser and Blair Nimmo of KPMG were appointed joint receivers of R&M Deluxe Upholstery Limited and R&M Deluxe Holdings Limited on Friday, April 13.
The group, which trades as Instyle Furniture, was established in 1983 and manufactures and retails sofas and seating.
The Aberdeen and Tollcross stores were closed by the groups management prior to the appointment of receivers, and the Uddingston and Hillington outlets are continuing to trade normally.
Seven employees were made redundant last Friday, and a further 10 redundancies have been announced today.
KPMG said is so far unable to provide any information regarding customer orders or deposits at this stage of the Receivership process.
“Each case will be looked at individually as more information regarding the business’s operations become clear,” a spokesman said.
Blair Nimmo, joint receiver with KPMG in Scotland, said: “R&M Deluxe Group has an excellent reputation for quality within the Scottish furniture sector, but has unfortunately experienced challenging trading conditions in recent years.
“The combination of the business’ reputation, strong brand name and property assets presents a very good opportunity for prospective buyers.”
KPMG said it is currently assessing the financial position of the group and is taking steps to market and sell the business as a going concern.