Lingerie factory set to go under

Courtaulds was a major supplier to M&S

The Courtaulds underwear company has announced the "intended closure" of its Lanarkshire factory with the loss of almost 147 jobs.

In a statement on Friday, the firm, which was a traditional supplier of clothes to Marks and Spencer, said it was doing all it could to find a "realistic alternative" to shutting the Wishaw plant.

We very much regret the impact of this proposal on the people affected ... but we see no alternative

Mark Patterson, Courtaulds Lingerie

A factory in North Derbyshire, which employs 350 people, is also threatened with closure.

The company believed the UK's current textiles market had made it very hard for its products to compete competitively.

Mark Patterson, chief executive of operations at Courtaulds Lingerie, which is part of Courtaulds Textiles plc, said: "We very much regret the impact of this proposal on the people affected, but the highly competitive nature of the clothing market means that we can see no alternative.

Market changes

"If the closure proposal is confirmed, personnel staff will provide help to employees to find alternative work of retraining opportunities."

A spokesman for the Scottish Executive said ministers were saddened to hear the news of the possible closure.

But they realised the move was a "commercial decision which did not reflect on the quality of the Wishaw workforce".

Nearly 150 jobs could go in Wishaw

The spokesman added: "Courtaulds is operating in an increasingly competitive international market and is having to change and adapt to improve its competitive position.

"The announcement of intended closure of the Wishaw facility is part of this change.

"Officials will remain in close contact with the company as will Lanarkshire Development Agency and the other local public agencies who will assist those affected to find alternative employment."

It was confirmed last week that Courtaulds Textiles had finally agreed to a takeover offer from Sara Lee.

The US food and consumer products group, which had been trying since February to purchase the company, offered 145p per share, valuing Courtaulds at £150m ($238m).

The UK textile industry received a blow last year when Marks & Spencer decided to stop buying products from key UK suppliers in favour of products from aboard.