COACH company Fraser Eagle has run into further difficulty after it announced its intention to appoint an administrator.

The latest move by the Padiham firm puts 124 jobs at risk and comes just two weeks after its decision to lay off 50 staff as a result of the worsening economic down-turn.

Business chiefs said Fraser Eagle’s plight was a sign that East Lancashire’s economy was starting to feel the real impact of the growing recession.

And the announcement by the company, which is based at Shuttleworth Mead Business Park, Padiham, casts further doubt over it sponsorship deals with Accrington Stanley and Blackburn Rovers.

The firm sponsors Stanley’s Fraser Eagle Stadium and also sponsors the former Walker Steel stand at Ewood Park, deals which could be jeopardised by potential administration.

Rob Heys, chief executive of Accrington Stanley, said: “We had a meeting last month when Fraser Eagle mentioned they were struggling financially and wanted to end their sponsorship of the ground.

“They had two years of a five year contract left and, while we are looking for new sponsors, we have budgeted for money from them.

“We are concerned that it is money that could not be coming into the club, but our thoughts are with the employees of the company at this time.”

Last month, Fraser Eagle managing director, Kevin Dean, said it would be talking to Rovers over its sponsorship deal, but no one from the club was available to say whether these talks had taken place.

Fraser Eagle confirmed that, at this stage, away travel for Burnley’s FA Cup tie at Arsenal this weekend would still go ahead.

The subsidiaries of Fraser Eagle effected by the decision to look at administration are Fraser Eagle Ltd, Fraser Eagle Property Holding Company Ltd and Fraser Eagle London.

Fraser Eagle Ltd directly employs 109 people, while 15 more are based in London.

Nick Briggs, strategy and business development director at Lancashire Economic Partnership, said: “The Lancashire economy is strong because it does not have the same reliance on high value industries, but it is still vulnerable to the recession as the case of Fraser Eagle shows.

“We are not immune to the down-turn and must get workers the right skills so that they can cope in the current climate.”