Workers at an historic Huddersfield textile firm have been dealt a Christmas jobs blow.

Westwood Yarns is to go into administration - and there are fears for many of the 135 jobs.

All of the staff have been called to a special meeting of the carpet yarns firm this morning, amid fears for its future.

It follows a letter sent to the workers saying that administrators are about to be called in.

And director Richard Collinge said it was “devastating” news.

The company is based at Washpit Mills in Holmfirth and has a history going back well over a century.

Mr Collinge and Mr Timothy Kay took over the company in October and said they had tried repeatedly to avoid the latest move.

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Mr Collinge said: “We saw the workers yesterday and had to make the very hard decision to call in the administrators.

“It is devastating especially coming at this time of year. But we have been told our trade credit insurance has been withdrawn and without that our suppliers are not prepared to do business.

“We have been looking at various options including refinancing the company but cannot find a solution.

“We are hoping that the administrators can come in with a plan to enable the company to carry on. We have orders and we have work in but the suppliers need the reassurance of the insurance to cover their debts.

“I am so sorry to have to break the news to our staff, many of whom have been here a long time. I cannot comment on what may happen with the jobs until we have met with the administrators.”

The company supplies yarn to many of Britain’s major carpet manufacturers.

The letter sent out to all the staff warns that redundancies are possible.

It said: “Following the withdrawal of trade credit insurance we have been left with no alternative but to put Westwood Yarns into administration. Administrators will be called to deal with the issues as they see fit.

“The fate of the company has not been determined but it is possible that redundancies may occur.

“Employee representatives will be appointed to deal with the consultation process.We make this announcement with great regret and with empathy to our workforce given the time of year.”

One worker, who has been at the mill for 11 years, said: “We are all in shock.

“It is bad news at any time but days before Christmas it is shocking”.