An ailing Bradford textile firm has received the go-ahead to sell £2 million of new shares to help finance more than 100 job losses.

The news came as union bosses revealed they were confident of saving some of the jobs under threat at Drummond plc.

Shareholders have backed a move which will see an extra 64 million shares up for grabs and £2 million rolling into company coffers. The offer is restricted to existing shareholders who currently own 21 million between them.

Stefan Simmonds, chairman of the group, said the move would effectively make the 150-year-old Lumb Lane Mills in Manningham a subsidiary of the global French textile firm Chargeurs.

"The sale will make them the biggest and controlling shareholder," he added.

On Monday, the company's annual general meeting saw shareholders back a rights issue resolution, paving the way for the shares sell-off.

The strength of the pound has been blamed for reduced profit margins and job cuts, which includes the closure of a Huddersfield subsidiary.

Although Mr Simmonds said the number of employees to be laid off in Bradford had not been finalised, the number could rise to 100.

He is set to leave the firm after 20 years to make way for the Chargeurs director, Sergio Combra.

Mr Simmonds said the money would cover redundancy and closure costs as well as helping improve the firm's general finances.

Over recent years, the firm has seen its workforce drop from 610 to 460 and it suffered £5.65 million losses this year alone.

In June, the management announced another bout of cuts and began consulting union chiefs.

Tony Barrow, the Transport & General Workers' Union's regional industrial organiser, confirmed that when consultations opened, it was envisaged that 98 staff faced the axe.

"Since that time talks have continued which have been beneficial to employees.

"Although there will be losses, some of the jobs which may have gone could be saved."

He said the management had been working closely with employees and although one or two staff had left, none had been through compulsory redundancies.

"It is too early to say how many jobs will go - the longer we keep talking the more chance we have of saving jobs," said Mr Barrow.