RECEIVERS looking to find a buyer for a debt-ridden frozen food firm have chosen a prospective candidate.

Administrators KMPG were tight-lipped about the preferred choice, which may be the saviour of 1,100 jobs at Hibernia Foods.

Talks are under way with the potential buyer which, if successful, would keep staff in work at three factories, two in Hartlepool and one in Stockton.

The London receivers had more than 150 companies interested in buying Hibernia Foods.

KMPG spokesman Rayner Peett said it was hoped a deal would be done by Christmas.

He said: "We cannot reveal who the potential buyer is at this stage as the talks are extremely sensitive.

"However, I can confirm there is just one buyer left. We are hopeful that a deal will be done within a few weeks, but I have to stress that word 'hope'. These are talks, the deal is not done."

Hibernia Foods had debts of at least £17m when it went into receivership in October.

More than 2,000 people are employed by the Dublin-based company at six factories across the UK. The receivers have kept production going and orders have continued to come in ahead of Christmas.

Workers have even been asked to come in to work extra shifts at weekends.

A spokesman for the Bakers, Food and Allied Workers Union said the workers had proved themselves to be flexible and committed during the period of uncertainty.

Hibernia Foods produces Sara Lee bakery products and Entenmann's chilled deserts, as well as a number of own-label products for supermarket chains. It employs 400 staff in Stockton and 693 in Hartlepool.