Up to 260 textile workers at a long-established woollen mill face redundancy after a potential buyer dropped out.

W and J Whitehead, in Bradford, Yorkshire, went into receivership in July with the loss of 218 jobs. A further 260 employees were warned they faced losing their jobs if a new owner could not be found by the time that orders ran out at the end of October.

Receivers at the Laisterdyke mill confirmed today that the only potential buyer is no longer interested in taking over the wool-combing company, which is one of the city's largest employers, and makes woollen yarn that goes into products ranging from clothes to fabric for furnishings.

Last month, bosses said they had no option but to close the mill due to the strength of the pound and the manufacturing recession. Union leaders said they were "shocked" by the news and that the closure would be a "huge blow for Bradford".

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