FEARS have been raised that 100 jobs could be axed at a textile firm.

Rainbow Corporatewear, which employs 100 people on the Skelton Industrial Estate at Skelton, east Cleveland, declined to comment on the reports.

However, union negotiators have sought to allay the fears of the workers that the company could shift the work to Derby in the Midlands.

Jackie Woodall, senior organiser for the GMB union, said: "The company would have to talk to us about any redundancies, but nothing whatsoever has been said to us at this stage.

"However, no one knows better than I that there can be problems in textile companies and we are in touch with the company.

"In the meantime, we are trying to placate some of our members who are very worried about the rumours."

The news follows a double jobs blow announced at Skelton Industrial Estate in the past few weeks.

Nearly 300 job losses were announced at shoe factory Texon UK and workwear rental firm Hirelin at the beginning of the month.