The Beauvale Group in Ilkeston is closing its Bellfield Road site in the town after losing £6m worth of business with Ikea.

Managers are meeting union representatives on Tuesday to discuss how the redundancies will be made.

The firm, formerly Elkstone Holdings, came out of receivership in August after being sold to its new owner by administrators.

We are bitterly disappointed but we have had to make these changes

Chris Howell, Beauvale Group

At that time 100 jobs had been shed by the firm, which had been losing money.

It was rebranded as the Beauvale Group by new management but the loss of the contract has meant further redundancies.

Chris Howell, chief executive of the Beauvale Group, said the mood among staff and management was very sombre.

"It is an unpleasant time of year with it coming up to Christmas.

"I think it is an awful issue for anyone having to face a potential redundancy at whatever time of year.

"We are bitterly disappointed but we have had to make these changes."

As Elkstone Holdings the firm had a £44m turnover and was the UK's largest manufacturer of caravan soft furnishings.

Production will be moved to its Hallam Field site in the town.