Wood processing firm Claymark Group is in receivership.
The company, which employs about 510 people, had been set for sale to the New Zealand Future Forest Partnership but came under pressure when the sale was not quickly settled.
On Wednesday, financial advisory firm KordaMentha was appointed as receiver to Claymark Limited and its related entities.
Their appointment covers Claymark's operations in Rotorua, Katikati, Thames and Auckland.
The Claymark Group manufactures and exports radiata pine products for cladding, fencing and balustrades.
It operates six manufacturing sites in New Zealand and has an annual turnover of about $160 million.
Staff contacted by Stuff said they couldn't comment due to "confidentiality" but some were upset they weren't told about the receivership before the public announcement.
KordaMentha receiver Brendon Gibson says the process of informing staff is taken very seriously but, given many of Claymark's employees were shift workers, it was "physically impossible" to tell everyone at once.
"We ran a proper process of telling people as early as we could and met with staff as each shift started.
"As soon as you tell one person, it spreads but we're trying to deal with it as well as possible."
In August, Claymark announced the sale of its business and assets to NZFFP but the deal had since stalled.
"As a result of NZFFP not yet settling, the group came under increasing working capital pressure to stabilise the business and fund future growth," the receivers say in a statement.
"The group has been unable to secure additional funding and, as a result, the board of Claymark has had to take the unfortunate step of requesting its senior debt provider to appoint receivers."
The receivers planned to continue to trade the business while they worked through the key issues but that would be reliant on support from log suppliers and key customers, KordaMentha said in a statement.
Claymark managing director Mark Clayton says he's committed to working with the receivers to maximise the return to stakeholders.
His immediate focus is to help the receivers with asset protection and communication with employees, creditors and customers.
Gibson says NZFFP had entered into an agreement to acquire the Claymark Group and there would be discussions with NZFFP regarding its contract.
"Ultimately, the business will have to be sold."
The following companies are in receivership:
Claymark Group Holdings Limited, Claymark Limited, Claymark Assets Limited, Claymark International Limited, Claymark Europe Limited, Claymark Us Limited, Claymark Group Trustee Limited, Profiles Woodproducts Limited
The receivership does not affect Claymark USA, Inc, the Group's US-domiciled business, which continues to trade as normal.