A meeting has been set up in a bid to save 600 jobs at Bradford's biggest wool mill.
The Transport & General Workers Union and Bradford North MP Terry Rooney will take part in talks with W&J Whitehead, which has gone into receivership.
The meeting with the Laisterdyke firm's receivers, Tenon Recovery has been sheduled for next week.
The T&G's national organiser for manufacturing, Peter Booth, pressed for the talks after warning of the "devastating" effect Whitehead's closure would have.
Regional industrial organiser for the union, Nick Halton, said: "At least we're talking now, and we want to see if there's any aid we can give Whitehead's to save the jobs.
"No decision has been taken yet as to what will happen to the firm. We want to get it back on its feet."
Mr Halton added that the receivers, who are now running the company, had guaranteed full pay, including accumulated holidays, for all employees.
Tenon Recovery is now trying to sell the company's business and assets.
But Mr Rooney hopes for a more satisfactory outcome.
He said: "The first priority will be to try and make the firm into a going concern."
The topmakers and worsted spinners, founded in 1858, is blaming an ongoing slump in orders for the decision to call in the receivers.
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