AN announcement on the future of Earby Light Engineers - part of the collapsed TransTec empire - is expected soon, according to the firm.

TransTec fell into receivership last month after allegations surfaced over an £11million customer compensation claim.

Receivers are trying to sell off parts of the business, including Earby Light Engineers, which has factories in Kelbrook and Colne employing around 260 people.

Andrew McLaughlin, finance boss of Earby Light Engineers, said there were a number of parties interested in acquiring the business but that he could not comment further.

"Earby has been an important part of the local community and we are hoping an announcement will be made soon," he said.

There has been speculation that the local management team at the firm are preparing their own bid to buy the company from the receivers.

Earby Light Engineers specialise in the machining of metals for the aerospace and automotive industries.

TransTec, which is part-owned by former Paymaster General Geoffrey Robinson, disclosed a problem with its accounts just before Christmas.

Shares in the firm were suspended after it was revealed that an £11million customer claim had not been properly entered into the accounts.

Chief executive Richard Carr and finance director Bill Jeffrey both left the group after the problem came to light. However, the company had already been hit by an increasing mountain of debt and slowing sales.

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