A LAST-ditch attempt to save the East Lancashire Paper Mill has failed and the company will now definitely close with the loss of 200 jobs.

Talks took place last week between the mill's management team, financial advisers, Bury South MP Ivan Lewis and Radcliffe Area Board chairman Coun Barry Briggs.

The hope was that an alternative to closure could be found, but in the event hopes were dashed.

Administrators Arthur Andersen, who were appointed to try to find a buyer, valued the site and business at approximately £6 million.

Coun Briggs said: "In order for the company to continue it had to raise at least that amount so that the administrators could pay off the creditors.

"We had hoped the mill would be able to go into partnership with a potential investor to raise the money but in the event the investor did not materialise."

He said he was bitterly disappointed and extremely sympathetic to the workforce.

The demise of the 139-year-old Church Street East mill has been blamed on foreign competition, the strength of sterling and escalating raw material costs. Although three bids had been made for the company, these were rejected because they were all lower than the value of the assets.

In January around 40 members of the original 240-strong workforce were made redundant and 180 were given their cards on Monday of last week, while the remaining 20 were kept on as operations were finally wound down.

Mr Lewis said: "It is very sad news for the workforce and the community and it is important that every effort is made to find alternative employment for them as soon as possible."

He added: "It is also essential that the administrators, in conjunction with the council, seeks to dispose of the site in a way that will bring some new employment opportunities to Radcliffe and I am willing to offer my services to help."

In recent weeks rumours have spread that the land is to be sold and developed for housing but Coun Briggs quashed this.

"That land is designated for employment use and any development of it would have to benefit the town. The only way it could be used for housing would be if the planning authority altered its policy and gave permission," he said.

"I know there have been all sorts of rumours but at this stage it's far too early to say what is going to happen."

Dave Hargreaves, branch officer of the Graphical, Paper and Media Union (GPMU), said: "The closure of the mill is a bitter blow to its loyal and committed workforce and the community of Radcliffe.

"I will be working to ensure the workforce receive all their entitlements and Mr Lewis has offered to intervene with the government to speed up redundancy payments. Local agencies will be striving to find as many people as possible alternative employment."