A MAJOR rescue operation was launched today to save one of East Lancashire's biggest textile firms.

The Wills Group, which operates Stonebridge Mills in Oswaldtwistle and Woodvale Mills, Waterfoot, has been placed in administration after it was unable to pay its debts.

The administration order granted by the High Court protects the household textile printing firm from its creditors while efforts are made to secure alternative financing.

Although redundancies have not been ruled out among its 900 strong workforce at seven factories in the North West, the administrators said they were hopeful of solving the company's problems.

"On the face of it the group has a profitable future but like many companies where cash is tight, the withdrawal of a major line of finance can cause problems," said Michael Alexander, joint administrator.

"Rather than try to live from hand to mouth the board has taken the sensible and prudent approach." Mr Alexander said he would be talking to banks over the next few days.

"In the meantime it is business as usual. We are entering the traditionally busy and profitable season for the group. We are confident our customers will support us."

Under the terms of the court agreement, the administrators must put their proposals for the future of the £30 million group to creditors within three months.

"I feel sure we can secure a positive result in the meantime," said Mr Alexander.

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