A WELL-KNOWN home improvements company has collapsed leaving at least 100 people out of work less than a week before Christmas.

Workers at east Dorset-based Apple Home Improvements – which had a showroom in Weymouth – have had their contracts terminated and have been warned the company will be placed into formal insolvency "as soon as possible."

Employees received letters this morning telling them their contracts ended immediately.

Many were in tears as the devastating news was delivered less than a week before Christmas.

Self-employed sub-contractors were told they would not be paid by text message.

And many customers have been left in the lurch with half-finished work or lost deposits.

Apple Home Improvements, well-known for its windows, doors and conservatories business, is based in the Aviation Business Park at Bournemouth Airport.

It also offers roof insulation, cladding, artificial grass, porches, fascias and guttering.

It is understood the Weymouth site, on land next to Goulds Garden Centre off Littlemoor Road, closed a few weeks ago.

The company also has showrooms in Bournemouth, West Parley and Southampton, which are closed today.

Director Scott Hill spoke to employees before handing out letters.

The letters said: " I regret to advise you that the company is no longer in a position to make payments to you for services rendered under its contract of employment to you.

"It is my intention to place the company into a formal insolvency process as soon as possible.

"Once the company is formally insolvent you will be able to make a claim to the Redundancy Payments Services in respect of monies that are owed to you."

One employee, who worked at Apple's offices in Aviation Business Park at Bournemouth Airport, said Mr Hill told them the company has major debts and is unable to pay its suppliers.

The employee, who does not wish to be named, said staff were "dumbfounded" and many were in tears.

However, she said that alarms bells had rung for the staff on Monday when it was announced that all jobs were being cancelled for the week.

Sub-contractors were sent texts telling them to cancel all jobs until the New Year, she said.

The staff member said that the firm had a big order book with hundreds of jobs in the pipeline but many existing customers were dissatisfied and were withholding payment or taking legal action against Apple.

She said: "Nearly everyone that called seemed to be unhappy with the work. Ninety-ninety per cent of my calls were from angry, frustrated, sad customers."

"My heart breaks for the people who were hoping to have the work on their homes finished before Christmas," she added.

A sub-contractor told us: "There are loads of people who have been left in the lurch by this. I was working on a conservatory this morning and now it's covered with a tarpaulin and won't be finished.

"Lots of people will be in the same boat. It's disgusting to do this at any time, let alone right on top of Christmas"

NEWS of the collapse of Apple Home Improvements brought back memories for former employees of Larkin Windows in Weymouth, a subsidiary of the firm.

Larkin went into voluntary liquidation three years ago this week.

It is understood around 50 people lost their jobs.

Former employee Pippa Rolls said: “It’s awful. I woke up this morning and saw a Facebook post from three years ago when me and the rest of the staff that lost their jobs at Larkins and we went out for a meal to sort of say ‘lets make the best out of a lost cause’."

She added: "My heart goes out to all the people who have lost their jobs because now they will be out of a job at Christmas and I remember what that was like for me.  We had to go through Christmas with no money or benefits."

Some of the Larkin employees went to work for Dorset Showhomes.

Director of Dorset Showhomes Tom Bugler said: “It’s brought back a lot of memories to people because it was three years ago that Larkin collapsed.

"If anybody who has been let down by Apple Home Improvements after putting down a deposit for a driveway or anything like that we would be happy to look at taking on the work so that they don’t pay any more than they would have done if Apple had finished the job."

A statement on Apple Home Improvements website said: "Apple Panels Ltd are sorry to announce that due to the current economic climate and a number of exceptional issues that have arisen during trading over the last 18 months, it is today entering into a CVL (Creditors Voluntary Liquidation) and will cease trading with immediate effect.

"We appreciate this will unfortunately result in a number of staff, sub-contractors, customers and suppliers being let down at what can be a difficult time of year."

The message includes advice for customers and those with a current contract.

The appointed administrators are Quantuma.

According to Companies House, significant changes took place at Apple Home Improvements on December 12.

Two new directors were appointed - Martin Andrew Dean and Andrew Downes - and Scott David Hill was terminated as a director.

There was also a notification of Invincible Holdings Limited as a person with significant control listed on the same date.

The company holds 75 per cent of more of the shares. Their registered address is Harlow in Essex.

The registered office address for Apple Home Improvements is Church Road in Parkstone.