BURNLEY MP Peter Pike has spoken of his concern at the news that major Burnley employer the Papermarc Group had gone into receivership three years after a management buy-out, leaving almost 250 jobs at risk.

The company, which employs 249 people at its plant in Caldervale Road, is continuing to trade while a buyer is sought.

A spokesman for the receiver said interest from a buyer had already been shown in the firm, formerly known as Smurfit.

Papermarc has a site at Caldervale Road and Bancroft Road, Heasanford. A second business, Papermarc Merton Ltd based in South Wales is also in receivership.

John Titley and Andrew Poxon of DTE Corporate Recovery and Insolvency Services Ltd, which has offices in Manchester, London, Bury and Blackburn, were appointed joint receivers last week.

Mr Poxon said: "The businesses are continuing to trade under the receivers' control so a buyer can be found for the businesses as going concerns, ensuring that employment is preserved and realisations are maximised for the benefit of creditors.

"Interest has also been expressed in the business and the receivers are hopeful of concluding a sale in due course."

Burnley MP Peter Pike said: "These are very well paid jobs and I would prefer that someone who has experience in the paper industry takes over the firm. I will monitor the situation very closely."

The firm was fined £100,000 in 2001 after a father-of-two was crushed to death in an horrific works accident. A judge fined Smurfit UK after hearing how Ian Holgate died at the Burnley factory.

Smurfit admitted failing to ensure the safety of workers and particularly Mr Holgate, 29, who was dragged into unguarded rollers on a massive cardboard making machine at Smurfit's Burnley plant on January 26, 2000.

The firm was taken over in a management buy-out from Smurfit Paper and Board after the Irish-based Smurfit group decided to sell the Calder Vale mills.