A MAJOR ‘white-collar jobs’ firm has pulled out of East Lancashire dealing a ‘grievous blow’ to the area.

Financial services firm HML has axed more than 100 jobs and switched another 158 to Skipton.

It has blamed ‘under capacity’ at its Padiham office for the move, which comes just months after it lost a key contract.

Business and political leaders said the announcement meant the area was losing quality jobs at a time when the economy was struggling to create employment.

East Lancashire Chamber of Commerce boss Mike Damms said: “This is a grievous blow and these are exactly the type of jobs we do not want to lose.

“Our manufacturing base is increasing productivity while reducing the number of people it employs, so the type of quality service sector jobs that HML provided is vital.

“The irony is that HML’s proximity to the Skipton head office probably made it a bit easier to close.”

The company, which handles financial accounts on behalf of customers, has begun a 90-day consultation with staff over its proposals to axe 113 roles and switch another 158 to its headquarters 22 miles away.

Burnley and Padiham MP Gordon Birtwistle said the decision to close the office was ‘devastating’ but was caused partly by finance firm GMAC’s cancellation of a contract with HML earlier this year.

He said: “I know the contract was a big factor and unfortunately it left the people in Padiham high and dry.

“These were high-quality jobs and it is devastating to lose them, but these people are skilled and there will be demand for them elsewhere.”

On Friday, some staff outside HML’s office on the Shuttleworth Mead business park said they were unhappy with how the announcement was handled.

One, who has worked for the firm for five years, said: “I feel let down.

"We heard about what was going to happen on the grapevine a few days before it was even announced to staff.”

Another said: “I would not want to carry on working for the company after this.”

HML refused to comment on the criticism by the employees.

Local businesses said they were also disappointed by the decision.

A spokesman for Simply Classic bistro, which is based on the business park, said: “It is bad news for Padiham and I hope a new company will move into the offices soon.”

The company said its Padiham site, which employs 271, was operating at ‘under capacity’ and closing it and making redundancies would ‘significantly’ save it money.

Some staff will be able to switch to Skipton, while those who volunteer for redundancy will reduce the number that are axed compulsorily.

Neil Warman, HML’s chief commercial and finance officer, said: “We understand the personal impact on employees.

“However, we must make tough decisions that are in the long-term best interests of the majority of our employees.”

The Padiham site will close by September, with staff expected to begin leaving in August.

Those who switch to Skipton will have their travel costs reimbursed at 100 per cent in the first year and 50 per cent in the second.

Brian McDaid, general secretary of the SURGE union, which represents HML employees, said the announcement was a ‘severe blow’.

He said: “Our priority is with our members in Padiham and the town of Padiham, coming as it does at a time of high unemployment.”