UNCERTAINTY surrounds the jobs of more than 300 workers at a troubled East Lancashire carpets firm after bosses put it up for sale.

And shareholders at the Gaskell plc floor coverings group, Clayton-le-Moors, have been warned they are likely to be left with nothing if a sale goes through.

A statement, formally requesting the firm be suspended from the London Stock Exchange, stressed that the sale was being forced by a failure to secure new financing.

The company refused to comment further and has so far made no statement on whether job losses would follow.

In 2003 Gaskell plc almost went out of business and last year it announced annual losses of £6.4million.

Prior to the stock market announcement, the company had unsuccessfully looked at sale of all or certain parts of the group's businesses, the negotiation of extended credit arrangements and a possible injection of new equity .

The group's board said it would aim to sell its assets as a going concern basis, but added: "Following the potential disposals it is unlikely that shareholders will be left with any value."

The shares have been suspended, pending clarification of the group's financial position.

The statement confirmed: "The Board is now focusing entirely on the sale as a going concern of Gaskell's businesses and is in the process of negotiating offers for its various trades and assets."

Peter Reid, regional organiser for the Transport and General Workers Union, said he could not make any comment on the situation until he had more information.

Gaskell came close to going out of business in 2003 before it sold its carpet tiles division and its Kidderminster factory for a total of £21million to clear mounting debts.

In December 2003 it announced a series of cost-cutting measures, which included 80 job losses and the shutting of the company's Rishton factory.

The closure saw factory and office staff moving to its headquarters at Clayton Park, off junction 7 of the M65, Clayton-le-Moors.

It's chairman Alan Chamberlain (pictured, inset) warned at the time: "Unless products can be supplied that are of first-class quality and on a genuinely competitive basis, then the group can neither prosper in its chosen market places, nor generate any real value for shareholders."

Gaskell has been making carpets, including Axminster, for nearly 100 years. The company has had added difficulties caused by a depressed UK carpet market. Its total sales in 2003 were £29.4m compared to £55.6m in 2002.