285 face the axe at Avon Rubber

TROUBLED motor components group Avon Rubber is in talks to close its Trowbridge hose factory, south west England, threatening up to 285 jobs. The firm, now in the sixth week of negotiation on a bid from an unnamed suitor, is also to restructure its European operations.

The closure and restructuring will cost £7.5m in 2002. Shareholders will also suffer as the total dividend is slashed to 7p a share from 24.2p a year ago.

In the year to 29 September the group incurred a pre-tax loss of £9.1m compared with a profit of £5.7m last time.