A leading UK furniture company has become the latest victim of the credit crunch after closing both of its Scottish showrooms.

A leading UK furniture company has become the latest victim of the credit crunch after closing both of its Scottish showrooms.

Mark Elliot furniture stores on Great Western Road in Glasgow and Colinton Road in Edinburgh have both been closed in the past three days. Five members of staff have lost their jobs.

The company's Belfast store was also forced to close last year because of a dip in profits.

Mark Elliot opened its first Scottish showroom in Glasgow two years ago, with the Edinburgh store opening in the past year. It has 13 stores in the rest of the UK. The flagship branch opened 12 years ago in Norwich.

The stores specialise in handmade wooden furniture, all designed by its chief executive, Mark Elliot, who learnt his woodworking skills from a family background in yacht building.

Company spokeswoman Lucy Coote said: "We made a decision that our Scottish showrooms were not cost-effective. The credit crunch has affected the business. Fuel costs have escalated over the past year and we had to take into consideration the fact we were transporting furniture large distances, from East Anglia up to Scotland.

"It had been more difficult to sustain the showrooms in the current climate and Glasgow has not proved to be as vibrant or as lucrative as we thought."