Sales halved and losses widened at a uniform supplier to the likes of Team GB, Pets at Home and NHS during its latest financial year, according to new documents.
Simon Jersey, which is headquartered in Cheadle Hulme, Stockport, has posted a revenue of £10.5m for 2021, down from £20.6m.
The company said the fall in sales was because of non-repeating PPE contracts delivered in 2020.
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Its pre-tax losses also widened during the year from £1.1m to £4.2m while the number of people employed by the company dropped in the year from 122 to 78.
Simon Jersey, which had been established in 1971, was acquired in 2014 by David Ross, who founded Carphone Warehouse with Charles Dunstone and Guy Johnson.
The business said it expected an improved trading performance in 2022 and a return to profitability in 2023.
The accounts come after BusinessLive reported in September that Simon Jersey's former head office in Lancashire had been put up for sale with a £5.5m asking price.
A statement signed off by the board said: "In 2021 Simon Jersey sales were reduced due to non-repeating PPE contracts delivered in 2020.
"The company's key hospitality, retail and beauty markets continued to be affected by Covid lockdowns in the first half of 2021 and have been challenged in the second half of the year."
It added: "The lower turnover, increased costs and additional stock provisions affected the trading losses in the year. Due to the Covid pandemic, logistical issues led to high irrecoverable freight costs.
"Management is implementing a growth plan in 2022 with a focus on its core customers, restructuring of overhead costs, improved pricing and exits from less profitable contracts.
"Further work is being completed to improve efficiency and productivity. A key part of this plan is further integration with Simon Jersey's sister company Ballyclare Ltd which shares the same head office and warehouse facility.
"The board expect an improvement in trading performance in 2022 with the company returning to profitability in 2023."
Simon Jersey also said: "The company's key markets of healthcare, hospitality, retail and beauty are recovering from the Covid pandemic.
"Whilst there are strong inflationary headwinds, Simon Jersey believes it is well placed to win new opportunities and see strong sales growth in the final quarter of 2022 and into 2023.
"The business is focusing on its core strengths and most profitable sectors, increasing UK market share whilst improving margins. The business continues to invest in its digital infrastructure and to maximise higher margin online sales."
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