Traders near a closure-threatened factory fear for their futures as the axe looks set to fall on more than 270 jobs.

Firth's Carpets in Bradford Road, Bailiff Bridge, Brighouse, is likely to fold as its parent company struggles to sell it as a going concern.

Brighouse Councillor Colin Stout (Ind) said the company's closure will have a devastating effect on the local economy. "It is greatly disappointing that an establishment like Firths, which contributed so much to the local economy, could close," he said, "Even though employees did not live in Bailiff Bridge, they used the fish shop, paper shop, grocers and even the dentists. All that trade will be lost.

"Village life revolved around that factory. Carpets from Firths have been used in places like the House of Lords, Concorde and the QE2. Once a link like that is broken, you never see the likes of it again. It is very unfortunate that current owners Interface ever got involved in it. All it did from the word go was asset-strip."

Interface Europe Ltd, which bought Firths four years ago, said a slump in demand for broadloom carpet products and its wish to concentrate on carpet tile manufacturing at its Shelf headquarters were behind the sale. It said it was with "great regret" that it had to make the announcement but it was working to secure employment for workers at other Interface Europe sites.

Waddington's Fine Carpets is directly opposite Firths Carpets in Bradford Road. "People come here because we get bargains from across the road," said owner John Waddington, "If it closes, we won't get them or the customers who come in for them.

"People moved into this village in the 1890s to get jobs in the mill. But Interface took it over and have destroyed it. A lot of contract salesmen left when Interface took over because they could see the writing on the wall."

Andrew Seymour, co-owner of the Londis shop opposite Firths, said: "Interface haven't a clue. They sacked members of the sales force. Interface are carpet tile people, not carpet manufacturers."

Nick Halton, of the Transport and General Workers Union, said the union was offering the company its full support. "We had a meeting and it said there were three or four companies who were strongly interested in buying Firths," he said, "I wouldn't say I was optimistic about another buyer with the current economic climate, but it is encouraging that people are showing an interest."