A COUNCIL today pledged to help find new jobs for 80 workers who are thought to have been laid off from a mill.

Staff at Wills Fabrics, at Stonebridge Mills, Oswaldtwistle, say they were told yesterday the firm had gone into receivership on Friday.

Shop stewards at the factory say they have been told two potential buyers toured the site on Saturday, leaving staff optimistic they may yet cling on to their jobs.

Council leader Peter Britcliffe, said: "We have instructed our economic development staff to start looking at what alternative forms of employment there are in the area.

"We have jobs being created by Brand Support Services who are moving into the Leoni mill in Pickup Street, so, hopefully, some will be able to go there.

"But this is very bad news for Oswaldtwistle. Many of the workers live locally and this will hit them hard."

Shop steward Lynne Berresford, of Rowan Avenue, Oswaldtwistle, said the mood among the workforce was one of shock and disbelief.

She said: "Everybody is gutted because nobody knew anything was going on. We have spent the weekend waiting to find out.

"We've all been guessing what could happen. Friday at 11.30am was the first time we knew anything. Some colleagues got a phone call at Langley Mill, Manchester ,saying the company had gone into receivership and accountants had been appointed to take care of it."

"We turned up and waited in the canteen for an hour and a quarter to find out the company went into receivership on Friday at 5.30pm. The accountants were called in by the banks as the directors felt they couldn't carry on."

Employees at Willsmart Factory Shop yesterday afternoon refused to comment .