STUNNED workers wept as bosses at one of East Lancashire's biggest factories announced it is to close with the loss of 550 jobs.

The decision by Leoni to shut the former Lucas Rists site is the latest announcement in a disastrous week which has already seen more than 1,600 local jobs lost.

And it prompted a dire warning that East Lancashire's economy "stands on the brink", faced with huge problems caused by the strong pound, cheap foreign labour and loss of the chance to bids for million of pounds of aid.

The Accrington wiring site, only taken over by German firm Leoni three months ago, will finally close in November.

MPs stunned by the triple blow today pledged to meet with Chancellor Gordon Brown and trade secretary Stephen Byers to discuss the jobs crisis that is deepening by the day.

On Tuesday Airtours said it was moving its holiday headquarters from Helmshore to Rochdale and 24 hours later SSL revealed it is relocating its Blackburn factory to County Durham.

Mr Michael Damms, the chief executive of East Lancashire's Chamber of Commerce, which represents 1,000 businesses in the area, today warned the area "stood on the brink" after this weeks losses and risked plummeting into economic turmoil.

Only a week ago local MPs and business chiefs had warned a Government trade minister that East Lancashire was facing major problems.

Most of the area recently lost its battle for Objective Two and Assisted Areas status which would have unlocked millions of pounds worth of Government and European grants..

Council bosses and MPs fought hard in particular for assisted area status which provides Government grants for businesses in poor areas.

"If that decision had been delayed three months we would have probably qualified for the status," said Mr Damms.

He said that although on the face of it East Lancashire's economy was relatively strong, he believed official statistics may not reflect real employment problems.

Although unemployment figures compare well with other parts of the North West, Mr Damms pointed out that there are a large number of seasonal jobs locally and wages are the poorest in the region.

He said the problems caused by the strong pound and cheap foreign labour were being exacerbated by specific difficulties faced by East Lancashire's major industries including wallcoverings and car components