FEARS that Crown Wallcoverings might close altogether on Friday have been allayed by union officials.

Rumours were circulating among former workers that business at the wallpaper plant would cease at the end of the week.

An former Crown worker with ten years of service revealed: "It's been said that the receivers will be taking away the machines on Friday and that people who are still working there have been told to find new jobs.

"If they take away the machines, there's no business left and it's as simple as that."

It is thought that only 60 employees will be left in the factory after all the redundancies but the rumour mill has cast doubts on whether the company will continue to exist in a few weeks time after 177 employees were made redundant at the beginning of the month.

The ex-employee, aged 48, said: "A lot of us are thinking now that it's all going to go now. They said that people would be kept on but no-one's convinced anymore because of the way it's all been handled and the way people have been treated."

Today a GPMU official stepped in to quash the rumours.

He said: "I have spoken with receivers Ernst and Young and I can say that there seems to have been some confusion with regard to the closure.

"Every year the plant has a scheduled closure at summer for when business becomes slower and it's quite like a summer holiday.

"We can assure people that trading is continuing and that the receivers are still confident of finding a buyer for the property."

Chorley-born entrepreneur Trevor Hemmings last week emerged as a potential buyer for the plant while former workers protested against their treatment by the company.

The union confirmed it was co-ordinating legal action against the receivers to claim lost earnings for workers.

Further discussions on frozen pensions are due to take place in the next two weeks.