A FORMER East Lancashire "business man of the year" has moved a step closer to taking control of two leading aerospace operations in the area.

Steve Hollis, named Lancashire Evening Telegraph businessman of the year in the 1990s, could take over Colne's Cleveland Guest and Pendle Aeroform, Burnley.

Both are part of the aerospace division of the troubled Midlands-based L Gardner Group PLC.

The company has now confirmed it has signed an exclusive deal with a merchant bank to negotiate the purchase of the division in a deal involving Mr Hollis and two other former directors.

The Colne and Burnley factories are being merged in a move that is likely to lead to around 50 redundancies among the 200-strong workforce.

Mr Hollis won the Lancashire Evening Telegraph title for his success in leading a management buy-out of Cleveland Guest in the early 1990s.

Following its acquisition by L Gardner in 1998, he went on to become chief executive of the group.

He resigned before Christmas and is now working with ABN Amro Capital to buy Gardner Aerospace which involves a total of 11 companies.