NINE people have been made redundant from Rossendale business Simplaclaim.
The firm, based in Newhallhey Road, Rawtenstall, has suffered backlash from bad publicity surrounding 'no win, no fee' litigation.
The company was set up a year ago and became a leading name in the field of personal injuries by being paid a fee to refer potential victims to solicitors.
At one stage it was receiving 100 calls a day but now liquidators have been called in and a meeting of creditors will be held on Tuesday.
Paul Stanley, of insolvency specialists Begbies Traynor, of Manchester, said: "The brand name of Simplaclaim has built up considerably over the last 12 months into a market leader in its specialised field.
"It is unfortunate that the company has suffered so badly from adverse publicity attracted by other companies in the same field.
"We would hope that the goodwill of the business can be salvaged.
"Therefore we are looking for anyone interested in taking the name forward to contact us as soon as possible.
"I have about ten people interested in buying the business.
"The company has undertaken a massive marketing campaign, has an established brand name that a lot of people have heard of and the phone number has already been distributed widely in the Yellow Pages.
"The staff can easily be recalled and there is a web page already up and running.
"For someone to get the business to that stage would cost £100,000.
"I will probably have to wait until the creditors meeting unless someone makes an offer and I can take it to the judge."
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article