J Burdekin Ltd, based at Ossett, near Wakefield, called in administrators earlier this week. The £2m turnover company says it has also been hit by the falling value of the pound.
David Wilson and Julian Pitts, of business rescue, recovery and restructuring specialist Begbies Traynor, were appointed joint administrators following discussions with directors Gerald and Jude O'Leary and David Sadler.
The firm imports rattan and wicker furniture from the Far East, and assembles furniture sets using high-quality cushions made in the UK.
J Burdekin sells products from its on-site 7,000sq ft showroom, and nationally through a network of stockists and retailers.
Mr Wilson said the business would continue trading as usual "for the time being." No immediate redundancies were planned for any of the 13 staff.
"Retail customers with outstanding orders will be given priority," he added.
"We are seeking a sale of the business as a going concern."