Jobs could be at risk after supermarket refrigeration and display equipment firm Blighline went into administration.

The Canterbury-based business employs 120 people and has annual sales of around £25m. It was founded some 40 years ago.

Tesco is one of its main customers and the supermarket giant has been closely involved in the firm’s financial arrangements after the collapse of a re-financing bid late last year. A round of previous layoffs cut the headcount from a high of 200. Debts are understood to be around £6m.

Administrators from Deloitte have been appointed at the request of the Blighline board. They said that deteriorating trading conditions and severe liquidity problems had left management with no alternative but to place Blighline into administration.

Carlton Siddle, joint administrator and a partner in Deloitte’s reorganisation services team, said: “We will continue to trade the business whilst seeking a sale as a going concern. The administration team will work closely with management, customers and suppliers during this time to ensure operations continue as normal.”

Blighline, which operates from a plant at Lakesview Business Park, Sparrows Way, Westbere, is one of the UK’s leading names in supermarket refrigeration, display and checkout equipment designed and manufactured to customer needs. It also fits out in-store coffee shops and high street coffee houses.