Smallbone of Devizes and Mark Wilkinson Furniture parent Canburg is set for its second round of redundancies in six months.

Up to 30 members of staff are thought to be involved in redundancy consultations. 'We confirm that there is a consultation process underway as a direct result of the continuing economic uncertainty,' says a company statement.

'It would be inappropriate to comment on specifics, including the number of staff that may be affected, while the consultation is underway. The process is part of our current efforts to right-size the business to maintain its strong future. Customer orders are in no way impacted.'

The move comes just days after owner Leo Caplan denied the group was in trouble, insisting it was enjoying its best trading position since its foundation in March 2009, with sales 26% higher than budget in October.

'The Chinese are desperate for top-quality British products. They can't get enough of them. Our Russian sales team has got us £800,000 of business so far this year.'

Rumours had circulated about the group's viability, fuelled by the decision to close showrooms in the US, the north of England and Scotland and the resignation of Martin Warbrick, sales and marketing director.

'Martin and I disagreed over sales strategy. The US is over as a prospective market and we need to concentrate on our markets further east. We closed the showrooms in areas where we are not doing the business. I have invested £6million of my own money in this company and have taken nothing out. I am chairman, chief executive, owner and bank. We owe nobody anything.'

Caplan says he is looking for outside investors.

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