Children's clothing manufacturer Cherub Limited, which went into administrative receivership on 18 June 2001, announced another 39 redundancies yesterday.

The company has been forced to make this move because the administrative receivers have not been able to sell the business as a going concern. The redundancies follow 50 job losses that were made in June.

Cherub continues to employ 80 people in its hosiery and garment divisions where they are working to fulfil Cherub's outstanding sales orders for the autumn/winter season. It is likely that there will be a gradual wind-down of the company over the next few weeks.

Allan Graham, administrative receiver and KPMG Corporate Recovery Partner in Leicester, said: "Whilst there has been significant interest in the business over the last three months, the uncertainties and difficult trading conditions in the textile industry have meant that no purchaser for the business has been found."

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