ONE of the last operational parts of the Paton and Baldwins manufacturing presence in Darlington is about to close, The Northern Echo has learned.

The company’s former warehouse in the town, now run by Coats Crafts, is to be shut down, with its 37 employees under consultation over their jobs.

However, the office-based part of the Coats Crafts operation, which employs 40 people, will remain open at its site at the town’s Lingfield Point.

The Paton and Baldwins wool factory employed more than 4,500 people in its Fifties heyday, before abandoning production on the site. Its warehouse operation remained – which was taken over by Coats Crafts in the Nineties, and has seen significant investment since the company moved in. Much of the former factory site has now been regenerated into offices by developer Marchday.

Work from the 74,000sq ft Darlington warehouse, which is rented by Coats Crafts and distributes crafts, haberdashery and handknitted products, is expected to be transferred to a site in Germany, which it owns.

A spokesman for Darlington Borough Council, which has worked with the company recently, said consultation over the future of the warehouse and staff is ongoing.

He told The Northern Echo: “We are working with groups including Business Link to try to offer individuals access to any training and support they may need.

“ There is a long history and tradition associated with this particular site, but there will still be some Paton and Baldwins operation continuing within Darlington, even if the warehouse does close.

“In this economic climate, it is important for companies to ensure the longevity of their business, and I know that is what Coats Crafts is looking to achieve.

“Their premises in Darlington are rented, but they own a warehouse site in Germany, so that is something they have had to take into consideration.

“I know we are all working very hard to ensure this operation remains in Darlington, and taking all possible steps to make sure this happens.”

Coats Crafts is the crafts operation of the global Coats business, which dates back 250 years.