A NORTH-EAST town has suffered another jobs blow with the news that 123 jobs are to go at a furniture factory.

Blenheim Furniture has confirmed that it is to close its operation in Newton Aycliffe, County Durham, in May.

The company, which makes upholstered furniture, took over the former Woodstock Upholstery premises in 1990.

Products made by the company are sold to Argos and other mail order catalogues, including Littlewoods, GUS, Freeman's, Empire Stores and Grattans.

Blenheim, based in Coat-ham Avenue, on the Newton Aycliffe Industrial Estate, is part of Walker and Homer, which merged with Christie-Tyler last year.

The company is believed to have been making a small loss and any business that remains will be transferred to the parent group's factory, in Scunthorpe, North Lincolnshire. It is hoped some staff affected by the closure may be able to transfer within the group.

The news is a blow to a town still reeling from the loss of 284 jobs following the closure of the Sanyo factory at the end of last year.

Councillor Bob Fleming, leader of Great Aycliffe Town Council, said he felt for the workers who would lose their jobs.

He said: "As I understand it, Blenheim Furniture is one of the medium-sized units which employs quite a lot of people and it's going to be very difficult for them at this time.

"This is very bad news, especially coming on top of other places we've had close in the recent past.

"It's a real blow to the town and the industrial estate, and I'm quite sure that both the county and borough council will be doing everything they can to bring extra work in."

Councillor Bill Waters, lead member for regeneration on Sedgefield Borough Council, said: "I don't know what the problems are with the company, but what I will say is that we can ill afford any job losses in Newton Aycliffe or anywhere in the borough."

Nobody from the company was available to comment yesterday.