MORE than 370 workers were dealt a blow last night when one of the region's biggest furniture retailers announced its imminent closure.

Stag Furniture is to shut down its manufacturing site in Sunderland in the coming weeks after seeing continued losses of more than £10m in the past three years.

Yesterday's shock announcement, which will result in 372 redundancies, came only two weeks after the company made 180 job cuts.

Union officials last night said they were disgusted at the management had dealt with the situation.

Stag, situated on the North Hylton Road Trading Estate, in Southwick, went into administration on February 14. It blamed a downturn in consumer spending and tough trading conditions for its demise.

Administrators PricewaterhouseCoopers (PwC) said: "The adverse market conditions in the furniture sector have been well publicised, and these have severely impacted the company, which has been struggling financially for some time. Over the last three years total losses at the company have exceeded £10m."

It said the management team that took over the business from Silentnight nine months ago had struggled to make improvements.

"Unfortunately, the current market conditions and the history of losses at the company, have deterred those parties who initially expressed interest from progressing matters further," said PwC.

Joint administrator Ian Green said: "It is a sad day when the closure of any business is announced. It is particularly sad when it involves the loss of so many jobs, as Stag has provided to the regional economy over such a long period of years."

Michael Hopper, of the GMB union, said workers have been left shocked and angered.

"We are disappointed and disgusted in the way this has been handled. Stag has not gone through a proper consultation process with the unions," he said.

"Our members lost all faith in the management. Some are shocked, others expected it, but all are angry."

David Allison, One NorthEast director of business and industry, said: "The public sector partners will now be meeting as a matter of urgency to put in place a full package of help to ensure that every worker has the best possible opportunity to find new employment."

Janet Snaith, Sunderland Council's head of business investment, said: "The council will be working closely with One NorthEast and Jobcentre Plus to provide support and assistance for workers."