CUTTHROAT competition from China has put the writing on the wall for historic Southampton manufacturer Stadium Chalk and Crayon Company.

Twenty jobs are under threat as a result of the 61-year-old Endle Street firm’s collapse into administration.

One of the largest manufacturers of its type in Europe, Stadium Chalk supplies drawing and modelling materials to the educational and industrial markets, the toy trade and for promotional use.

One of the company’s largest accounts is burger firm McDonalds, which includes crayons in the Ronald McDonald Lucky Bags.

Despite having a strong order book, the business, faced with competition from Chinese suppliers and rising import prices, has run into cash-flow problems.

It could spell the end of a business which has seen children as far away as Africa and the Middle East enjoy the simple pleasures of drawing with chalks and crayons made in Southampton.

“This is a very sad situation,”

said Antony Fanshawe, of Begbies Traynor, who have been called in as administrators.

“It is a sign of the times really when a business as long-standing and respected as this one goes to the wall.

“However, we are optimistic about the potential for us to find a buyer for the business and we are in discussions already with a number of prospective purchasers.

“If we are successful at securing the sale then we will be able to retain some of the workforce who have clearly enjoyed working at Stadium and are incredibly loyal to the business and the management team.”