UNIONS say they have given up hope of saving jobs at furniture retailer MFI's North-East plant, which is expected to close at the end of next month.

The troubled company announced last month that it was closing its factory on the Preston Farm industrial estate, Stockton, with the loss of 533 jobs.

MFI has begun consultation with staff, which is expected to be completed in the next three to four weeks, after which unions expect the factory to close.

Allan Gray, of the Transport and General (T&G) Workers Union, said: "Certainly, the company is hell-bent on closing the factory, so we are doing damage limitation at the moment.

"We are expecting that it will close at the end of May.

"We are now doing all we can to get as many MFI staff jobs as possible."

A jobs fair is being held today for the workers.

JobCentre Plus, regional development agency One NorthEast and employment consultants are working with the T&G to find jobs.

Last night, an MFI spokeswoman said the consultation period would finish at the end of next month, but would not confirm that the factory would then close.

She said: "It is still under consultation at the moment, so we cannot say it is definitely happening."

But Mr Gray said he believed the closure was inevitable, that no proposals put forward to save the factory had been accepted by MFI, and that the closure was likely to take place as soon as the consultation period ended.

MFI announced last month it was cutting 1,500 jobs across the UK as part of a restructuring drive aimed at reviving its flagging fortunes, which included the closure of its Stockton plant.

At the time, unions described the move as devastating for Teesside, and a dark day for manufacturing in Britain.

It is believed MFI is transferring production to Italy and Turkey.

MFI made losses of £600,000 last year, against £54.4m profits the previous year.