TIME Computers, one of East Lancashire's biggest employers, is in talks with its bankers after a slump in the market.

The privately owned company based in Simonstone, near Burnley, is in refinancing talks with the HSBC bank.

Mike Phillipson, Time's marketing director, said: "It is correct we're in talks with our bank.

"This is a temporary issue rather than a terminal issue.

"Any business has regular conversations with its bankers."

Mr Phillipson said he expected other computer companies would be in a similar position to Time because of the general slump in computer retailing.

Last week US computer maker Gateway issued a profit warning after a slump in demand.

Time, which employs more than 2,000 people -- including 1,000 at Simonstone -- announced a massive high street expansion in the autumn with the creation of Time Talk, a 150-strong chain of shops selling a range of electronic items.

It is Britain's biggest computer retailer with a chain of more than 200 shops across the country selling its products.

Time's difficulties stem from its move into retailing and the subsequent slump in the PC market.

The company is best known for its TV adverts featuring Leonard Nimoy, Mr Spock from Star Trek

It was founded in 1987 by consultant paediatrician Dr Tariq Mohammed, who used a computer to calculate feed dosages for his patients, and his younger brother Tahir Mohsan. Dr Mohammed decided to see if there was a market for mail-order PCs by advertising one in the Lancashire Evening Telegraph. He set up a shop in Preston New Road, Blackburn, before the firm moved to Devonport Road and then Simonstone.