The Baked Snacks Company (BSC) has gone into administration after facing financial difficulties and staff disputes.

Middlesborough-based BSC made losses of £1m on sales of £2m in the year to April 2008, which worsened to losses of £2.79m on turnover of £2.86m in the year to April 2009.

Administrator Gary Hargreaves at MCR said it had received an offer for the firm. He said: "We are hopeful of getting a positive outcome at the end of August."

Tilbury Property bought the company from confectionery and snacks manufacturer Zetar last April, after directors admitted they had failed to get supermarkets interested in its character-licensed children’s snacks. However, they said they had been able to secure "substantial orders going forward".

Despite this, BSC still struggled financially and, earlier this year, about 30 of its 100 workers accused the management of withholding salary payments.