Bradford's textile industry was reeling today after the shock announcement that two mills will close - putting 186 jobs at risk.

British Mohair Holdings is to close its White Rose Mill, in Valley Road, Bradford, from where 36 workers sell and despatch its Jarol hand-knitting yarn and Grove Mills in Keighley - putting 150 jobs in jeopardy.

Redundancy notices have yet to be issued by the firm whose managing director Richard Stork today vowed to do all he could to find jobs for some of the people threatened with redundancy.

"We will do all in our power to find places in the company for as many people as possible and welcome any support we get from the unions or Bradford Council."

David Wilkinson, chief executive of Bradford & District Training & Enterprise Council, said today that help for the workers and support for the company would be offered from the TEC, Business Link and Bradford Council.

Workers at both sites were told of the closures at mass meetings yesterday afternoon. Staff at Keighley were particularly shocked as they knew orders had fallen but never expected to lose their jobs

The company will be left with 400 textile workers and 400 in its engineering division if all the jobs are lost. Talks are taking place with workers and union officials. A union spokesman was today unavailable for comment.

The firm stressed that other part of its business, including its other mohair production centres in Shipley and Northern Ireland, Crofton Yarns, also at Keighley, and George Ackroyd in Bingley, were unaffected by the job loss announcement.

Mr Stork said that a decision to close the mills came after a strategic review of its mohair operations because the Keighley business had been a loss-maker for a number of years and followed a fall in profits with the half-year results which came out last September.

The firm announced pre-tax profits of £285,000 compared with £521,000 previously. This was on a slightly increased turnover of £23.2 million compared with £21.4 million previously.

He said: "The rise in sales of casual clothing has meant the quality end of the clothing market has suffered so fewer people are buying mohair men's and ladies clothes. The hand-knitting yarn is also spun at the Grove Mill and so sales people, warehouse workers and distribution staff at Bradford in the Jarol business are affected."

Mr Stork said the firm, which exports 50 per cent of its textile products, had also suffered from the effects of the high pound abroad and the rise in the value of the pound over the last few years.

He refused to comment further on what would happen to Grove Mill or the Jarol business premises other than to say the board was "pursuing other opportunities" for them.

The news came as a bombshell to staff at Keighley who were aware orders were down in recent months but were unaware their jobs were under threat.

A night shift worker at Grove Mills, who refused to give his name, said: "People were completely stunned. We knew things were bad but not this bad. Some people were so upset that they left straight after the meeting. The management gave them the rest of the day off.''

A 52-year-old women, who had worked at the Keighley factory for 18 years, said: "It came as a big shock to me but it was worse for others. Some husbands and wives work there in the same department, so it is a double blow for them.''

She said they were immediately starting on short-time and the factory would not be operating today.

Next week it would operate on just Monday, Tuesday and Wednesday and the same for the following week during which time management would review the situation.

David Wilkinson added: "I am very sad this industry is suffering yet more losses, and employment in the district is being affected. We will aim to put in place whatever support we can to help preserve the valuable skills held by many of the individuals affected. Regrettably it's a sign of the difficulties faced by the industry.

"The issue is its ability to compete internationally and that brings us back to the strength of sterling, which is a crucial factor."

Bradford Chamber of Commerce president Dr Derek Wood also said the strength of sterling was damaging the industry. "Despite some recent interest rate reductions it is still double that of our near neighbours who have embraced the Euro," he said.

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