FORTY workers at a Clitheroe carpet factory have been made redundant after receivers were called in at their parent company.

Accountants KPMG said they hoped to find a buyer for Stalwarts Commission Carpets, which was continuing to trade as normal from its base at Primrose Works.

Workers at Blackburn-based Manx Carpets are also anxiously waiting for news on their future.

The company is also part of the Derbyshire-based Willoughby Holdings, which has been placed in administrative receivership.

A KPMG spokesman said Manx Carpets, a retail distribution operation at Syke's Mill, Belthorn, would continue to trade with its full workforce of 25.

"The company's retail customers continue to support the business and the receivers are optimistic that it can be sold as a going concern," he said. Stalwart, which manufactures tufted carpet, is continuing to operate with a reduced workforce of 42.

The third company in Willoughby Holding's group, Network Flooring, at Ripley, has been closed with the loss of all its 50 jobs.

Andy McGill, senior manager with KPMG Corporate Recovery in the East Midlands, said: "Pressure from suppliers, cash flow difficulties and the general downturn in the UK carpet manufacturing sector have all contributed to the problems at Willoughby Holdings.

"However, given the cuts in the group's overheads which we have been able to implement, we are optimistic that we will find a buyer for Manx and Stalwart."