Fashion group Cortefiel said it will lay off 172 workers from its Confecciones del Sur factory in Malaga, Southern Spain.

The company announced the decision after a 19-hour meeting between unions and management.

Meanwhile, an additional 106 workers aged 54 or older will take early retirement.

Cortefiel has said it will end production at the Malaga site because if its "excessively high costs".

It is believed Cortefiel will keep on the rest of the site's employees, who work in design and research.