Evesham Vale Propagators owes about £300,000 to creditors and is attempting to sell remaining growing stocks, plants and machinery.
A representative of Gloucestershire-based insolvency practitioner Janes said: "The company found that trading wasn't sustainable. It was hit by two years of poor weather, which reduced product demand, particularly following the flooding in the summer of 2007. But the final straw was a substantial bad debt - this badly dented the company's cashflow. It's unfortunate, as Evesham has good forward orders, but it couldn't last long enough to fulfil them."
The Janes representative added that the company was in negotiations with prospective buyers interested in buying the stocks of young and mature plants but that no final deal had been struck as yet.
It is not possible for the site to be sold as a going concern.
Last year, Evesham Vale Propagators and two other Worcester-based nurseries amalgamated their production and sales. The firms remained as independent businesses and, apart from settling inter-company balances, the liquidation will not affect the running of Knowle Hill and Ellis Brothers.
Evesham Vale Propagators owner Francis Mizuro spoke to HW but was not able to comment on the situation for legal reasons.