WORKERS and managers at Burnley's Lambert Howarth factory made the ladies' shoes plant profitable for the first time in years - just as bosses announced 200 job losses.

As the end of production at the Healey Royd works was announced, the company revealed how hard staff had worked to improve quality and productivity, putting the site back into the black on balance sheets.

"The company is grateful for their efforts, which have prolonged the life of the mill," said an official statement today.

But it added that the fate of the plant was sealed by the major market shift away from the type of court shoes produced at the works.

Closure was 'unavoidable' to head off serious losses at Burnley, which could have compromised the success of the footwear group as a whole.

Manufacture at Burnley had caused headaches for Lambert Howarth in recent years and following a major shake-up and 50 job losses in 1994, bosses warned last year of difficult times ahead. At the same time, the company said profits in the imported footwear division had again improved. In March of this year, Lambert Howarth unveiled pre-profits for 1996, well up on the previous year at £2.2l million.

Turnover also increased by more than £9 million to £98.7 million.

The Stock Exchange-quoted company has a market valuation of £19 million.

Job search bosses in Burnley were today optimistic that axed workers at the factory will soon find new jobs. Council economic development chiefs offered help when they met management at the Healy Royd plant shortly after the bombshell announcement that production will cease and up to 200 face redundancy.

They offered assistance in creating new jobs at the factory and announced a special information day for axed staff to spell out the job opportunities open to them.

Economic development head Hugh Simpson, said the local economy was in good shape and optimism was also boosted by the fact that of the 330 workers who lost jobs with the closure of the town's Prestige factory earlier this year, only about 25 were still out of work.

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