Children's clothing manufacturer Garan Inc has blamed cheap foreign imports for its decision it plans to close its 30-year-old factory in Kaplan, Louisiana, with the loss of 167 jobs.

The firm has announced it will shut the plant in the next few months but will keep open the distribution side of the business which curently employs around 40 people.

Garan's announcement is the latest blow for the state's troubled textile and clothing industry which has seen more than 5,000 people lose their jobs in the past few years.