WORKERS laid off when a Padiham factory went bust are set to receive a £300,000 windfall.

Union officials, representing 129 of the 156 employees who lost their jobs when Perseverance Mills Ltd folded last year, have won their employment tribunal against administrators.

The General Union of Loom Overlookers (GULO) took London-based PKF to court after it failed to enter into the 90-day consultation agreement it was bound to by law when the accountants intended to lay off more than 100 workers.Today union General Secretary Don Rishton said the cash would make the best out of a bad position which should not have happened.

He said: "We are delighted with the result, but we are conscious this award does little to replace the loss of a highly-efficient company and the 156 jobs it supported."

Perseverance was founded in 1901 and became a world leader in producing lightweight fabrics.

It developed a unique outdoor fabric called Pertex, which was 50per cent lighter and packed 50per cent smaller than the others available.

However, the firm, based at Albion Mill, closed last June after failing to attract a buyer and blamed fierce foreign competition.

Following the decision by the Department of Trade and Industry's (DTI) Insolvency Service, the cash will be shared among the former workers.

Union bosses estimate the money will be about £300,000 and final payments will vary dependant on benefits.

Mr Rishton said the DTI would contact former workers who should receive payments within six weeks.

He added: "Employees and unions were bitterly disappointed the receivers did not sell Perseverance as a going concern and, at the time, we were furious we were excluded when there were numerous expressions of interest in buying the company.

"Many of us were left with the feeling this was one factory closure that should not have happened."