The saw mill component of Pinetec has shut down today after receivers PricewaterhouseCoopers failed to lock in a buyer.
PwC partner Derrick Vickers has last week warned the saw mill, located in Collie, will shut down this week if a buyer was not found.
"It is with regret, despite our best efforts to achieve a sale of the whole business as a going concern that we had to notify employees of the saw mill that their services will no longer be required after today," Mr Vickers said.
He added finished goods will be dispatched by May 4.
A skeleton staff will be maintained for up to one month to help with the winding down of operations and prepare the plant and equipment for auction.
"It is unknown whether there will be sufficient monies to cover all or part of the employee entitlements from the company's assets, but we will assist employees to file applications with General Employee Entitlements and Redundancy Scheme (GEERS)," Mr Vickers said.
A PwC spokesperson told WA Business News 13 employees will be affected by the saw mill closure.
Rodpak bought Pinetec's pallet manufacturing component last month and will consolidate the business at Bassendean.