Ernest Wright and Son has been making scissors by hand in the city since 1902 but managing director Pam Addy confirmed it would cease trade and hold a sale at its Broad Lane site on Friday and Saturday.
The family business had been rocked by the sad death of its former boss Nick Wright, aged just 48, in February. It had previously struggled to fulfil a flurry of orders for its classic Kutrite kitchen scissors, which were being revived after nearly 3,700 backers pledged almost £250,000 when a crowdfunding appeal went viral, after key workers were taken seriously ill.
Ms Addy said: "It is with regret that we must announce that Ernest Wright & Son Limited, one of the last hand made scissor manufacturers in Sheffield, is ceasing to trade with the loss of seven jobs.
"Following the untimely death of the company’s owner and director, Nicholas Wright, in February, the employees sought to keep the company and business trading.
"Unfortunately, the liabilities of the company are such that it is insolvent and is unable to continue to trade. As a result the company is ceasing to trade and in due course will be placed into creditors voluntary liquidation.
"In order to maximise the value of the company’s assets a closing down sale will be held on Friday, June 29 and Saturday, June 30 at the company’s premises, 58 Broad Lane, Sheffield, S1 4BT – 10am to 4pm.
"Christopher Brown of Hart Shaw Chartered Accountants is assisting the company’s director in liquidating the company and can be contacted on 0114 251 8850 should there be any interest in the company’s assets.
"These have been very trying times for all concerned especially the employees and we would like to thank everyone who has offered their support."