A brighton firm responsible for furnishing the Houses of Parliament and the QE2 is believed to have folded.

Maclean Furniture, based on Hollingbury industrial estate, laid off 27 craftsmen days before Christmas after they refused to sign a new contract.

Trade union GMB is taking the company to an employment tribunal for unfair dismissal and to secure redundancy pay.

The union had been in talks with the factory's manager Peter Lowell but now believes the company has ceased operations altogether.

Today, a hand-written sign on the company's front door in Crowhurst Road reads: "This factory is closed" and its phone line has been disconnected. GMB has been told by its members that office and administration staff have also lost their jobs.

Previously called William L Maclean, the firm went into receivership in September last year with the loss of 40 jobs.

In October, it was bought by Harvitech, which changed its name to Maclean Furniture. Hopes were high it would continue operating.

Events turned sour when employees, some of whom had worked for the company for 30 years, refused to sign a new contract after GMB claimed it contained illegal clauses.

The next day they were told they had been laid off until further notice.