Western Australia's competitive mobile accommodation market has resulted in the demise of family-owned and operated company Desert Plains.
The company was placed into administration two weeks ago after racking up debts of over $3 million.
Administrator Grant Thornton had planned to sell the business and continue operating, but partner Matthew Donnelly told WA Business News the expression of interest process had failed to attract a viable offer.
As a result the company's assetts would be split and put onto the market separately.
Mr Donnelly said the market for manufacture of mobile accommodation was extremely competitive and Desert Plains had simply failed to make a profit from its product.
"The mobile accommodation industry segment is fragmented, with low barriers to entry, and is under considerable pressure. We could expect to see more stress and failures in the segment going forward," Mr Donnelly said.
Desert Plains had previously held contracts with Rio Tinto, Chevron and Fortescue Metals.
Mr Donnelly said efforts to compelte outstanding orders for work had also failed and arrangements were being made to sell partially-made products as is.
The company's 35 employees have been made redundant.