Kevin Feddy

MANCHESTER textiles firm Downtex is shutting its Bolton factory to cut costs after plunging into the red last year.

Some production will be moved to its main factory at Strangeways, Manchester.

Downtex, which makes bedding and curtains, suffered from the effects of cheap imports during 2002.

Turnover was stable at '6.12m, but pre-tax losses were '559,378 compared with profits of '10,000 in 2001 as margins were squeezed.

It also made less gross profit than expected from the acquisition of Visions Homeware.

Chairman Gerald Carey said the AIM-listed company's full-year results were "extremely disappointing."

The poor performance has prompted the board to scrap the shareholders' dividend.

Downtex is focusing on developing its chain of shops, its wholesale business and its new range of wooden, flat-pack goods available through mail-order catalogues.

The company said competition from abroad continues to hit UK manufacturing and added: "We are addressing the margin issues by rationalising the manufacturing base."

To help ease the firm's problems, finance director David Mond has loaned the company '750,000. Tweet