Staff at Beauvale in Ilkeston were told on Monday by administrators that the company will cease trading within the next two weeks.

It follows months of uncertainty at the factory which makes soft furnishings for caravans.

PriceWaterhouse Coopers were called into Beauvale last month after the company went into administration.

Economy hit

It announced 150 jobs losses then. The group had previously laid off 120 workers in December.

Only last summer the company was bought out of receivership after its previous owner Elkstone Holdings also ran into financial problems.

Monday's announcement means a total of 900 jobs have been lost in less than a year.

Unions say that although the news is not a surprise it is still a devastating blow for the area's economy.