SIXTEEN jobs have been axed at a historic East Lancashire firm. Church-based Ashworths Products Ltd, which makes oils and fats for the food industry, called in administrators on Wednesday.

Bosses decided it could not recover from losing a major customer six weeks ago. And its Darwen-based sister firm, Fresco Oils and Fats, which also lost out when Irish company Kerry Foods took away £4million of business, is also in administration but has suffered no redundancies among its 24 employees.

Joint administrators David Riley and Charles Escott, of RSM Robson and Rhodes, said both firms were still trading and they are looking to sell them separately as going concerns.

Mr Escott said: "We have had interested parties contact us about both companies and we expect to have heard from many more by the middle of this week.

"There are good indications already that there will be interest. If we can save the 60 jobs that remains then we will have done our job."

The 16 made redundant from Ashworths, out of a workforce of 51, were paid up to date and will claim severance pay from the Government. All the remaining workers at the firms, owned by Robin Smith, will continue to be paid as normal.

Ashworths products was founded in 1929 and is based at the Bridge Street Refinery, Church, while Fresco Oils and Fats, founded in 1962, is based at the Rosehill Refinery in Sough Road, Darwen.