ONE of East Lancashire's oldest firms has announced another round of job cuts after finally deciding to stop manufacturing.

Eight workers will lose their jobs at the Cherry Tree Machine Company in Blackburn after the firm decided it could no longer make and sell its laundry machines competitively.

The company has blamed the strong pound and cheap imports for a series of job losses which has taken the workforce down from 100 just over a year ago to 20 now.

It will now concentrate on the spares and service side of the business and will also sell machines sourced from other manufacturers.

Cherry Tree, which manufactures and supplies laundry equipment, is one of East Lancashire's oldest firms.

It moved its 100-strong workforce to a new site at Walker Industrial Park just over a year ago. Managing director Kirk Forrest said it had been a difficult time for staff.

"There is a large element of shock here.

"The business has run down quite rapidly in the last six months and for people who have been part of Cherry Tree for a long time it is very sad."

But Mr Forrest said he felt more confident of the firm's future on the spares and services side than in manufacturing.

"It is a relatively concrete business for us to concentrate on.

"There is a very large population of existing machines in the UK and overseas."

The firm is planning to sub-let part of its Walker Industrial Park site following the closure of the manufacturing department.

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