MP's shock at factory closure

The Selkirk factory's assets are to be sold off

A Devon MP says a decision by receivers to close a factory with the loss of 180 jobs is premature.

Selkirk Manufacturing Ltd, which makes chimneys and exhausts, is being wound up by receivers Deloitte and Touche.

The factory, on the Pottington Industrial Estate in Barnstaple, went into administration two months ago.

Receivers Deloitte and Touche announced on Monday that the plant would close and its assets would be sold off.

However, North Devon MP Nick Harvey said only last week several bidders were interested in taking over the company.

The jobs and the value to the local economy of keeping Selkirk going as a trading concern hasn't really been at the top of their (receivers') agenda Nick Harvey

Redundancy notices were being issued to the 180 staff working at the plant. However, 15 workers are be kept on for the time-being to prepare equipment for sale.

But Mr Harvey said he was shocked at the decision, which he said was premature.

He said: "I'm afraid this is another in a long line of strange decision made by receivers, and one wonders at the logic of it.

"It often seems the receivers want to get their own fee out of this, whereas the jobs and the value to the local economy of keeping Selkirk going as a trading concern hasn't really been at the top of their agenda."

Deloitte and Touche said it had been been looking at bids to take over the business, but none were acceptable.

North Devon has suffered substantial job losses recently, with the closure of the Croydex factory in Barnstaple.

There have also been redundancies at the Clarks Shoes factory in the town, plus the departure of Thomson IBL at Whiddon Valley.

Tim Jones, from the Devon and Cornwall Business Council, said of the closures: "It does make the whole picture of the north Devon economy look rather difficult.

"We have to look to government and to the Regional Development Agency for a concerted campaign to try and improve the situation."

The announcement came amid more gloomy news for South West firms.

The CBI's latest survey of business confidence shows that for the second time in a row, the region's manufacturers reported the sharpest fall in prices in the country.