A FURNITURE group in the North-East yesterday announced it was shedding 30 jobs after falling victim to tough trading conditions.

The 161-strong workforce at County Durham-based Europa Sofabeds and Brundellwood Upholstery, both run by the same management team, has been warned of the redundancies, but bosses are unable to say yet who will be affected.

The group, which only last year forecasted a turnover of £30m by 2010, is restructuring the business and downsizing the number of factories it has on the Newton Aycliffe Industrial Park from three to two.

Managing director John Forrester said the group is looking to combine the manufacturing facilities of Europa and Brundellwood under one roof, while maintaining a second unit for returns and imported furniture.

"We haven't decided yet which factory is closing, we are waiting for the landlord of all three sites to come back to us to see what we can do," he said.

"Combining the two manufacturing units will lead to 30 redundancies but nobody has been issued with any notices yet."

The workforce does not have union representation, but Mr Forrester said he is in constant contact with elected members of the shop floor about the company's future.

A general downturn in the retail market and a particularly quiet autumn and winter period have been blamed for the company's subsequent restructuring programme.

The company also made seven redundancies last month.

Mr Forrester said it was too early to say what cost savings would be made by consolidating the businesses.

"Until we know which site we will be losing, I can't put a figure on the amount of money we will save or the reduction in rents or rates," he said.

"Of course, the 30 redundancies will have quite an impact too."

In July last year, the group said its sales has increased by 150 per cent over six years to £25m.

At the time, Mr Forrester predicted Europa and Brundellwood would together be turning over £30m by 2010 and said it would be taking on 30 extra staff over five years.

Yesterday's announcement came only days after street lighting manufacturer Transmission and Lighting, also based on the Newton Aycliffe Industrial Park, said it was closing its factory with the loss of about 100 jobs.

The firm, part of the Balmer Lindley Group, blamed increased costs and energy prices for its demise and said it was moving production to its Scunthorpe plant