THE receivers called in to salvage the crisis-hit Crown Wallcoverings plant in Darwen have insisted they had no option but to axe 177 jobs.

Ernst & Young were brought in as administrative receivers by Imperial Home Dcor Group after its UK operations suffered heavy losses.

In a statement, they said: "To have a realistic chance of surviving as a business, the running costs of IHDG will have to be substantially reduced to these that can be sustained at current levels of demand.

"It is with great regret that the Joint Administrative Receivers have therefore taken a decision to announce 212 redundancies with immediate effect out of total workforce of 807."

In addition to the 177 jobs lost in Darwen, there were 22 redundancies at its Morecambe factory and 13 at the company's distribution depot at Middleton. A taskforce from Blackburn with Darwen Council has met with the receivers and is working to ease the blow for the victims of the cuts.

Imperial bosses blamed a fall in demand for wallpaper behind the devastating losses. But Ernst & Young said it is hopeful that they will be able to stabilise the company's trading performance and acknowledge what they describe as the supportive stance taken by customers, suppliers and the workforce.

"This should enable the business to continue to trade in the short-term, while a buyer for the business is sought," said a spokesman.

"The business has already attracted considerable interest from potential purchasers both in the UK and overseas and the joint administrative receivers will be speaking with these parties shortly."

Councillors and officers have organised an open day for those who have been made redundant at Derwent Hall on July 15, from 1.30pm to 6pm, where council agencies will be on hand to provide advice.

Local employers looking to recruit staff have also been invited along.

Anyone who has lost their job is advised to call 08456 049037 as soon as possible to sort out their benefit entitlement.