TWO companies behind a bid for struggling Clitheroe firm Ultraframe have pulled out after huge financial losses were revealed.

Figures show the conservatory company incurred pre-tax losses of £35.9million for the six months to March 31.

The interim results show an operating loss of £2.4million, and the company has been forced to mark down the value of their American company Four Seasons' at a loss of a further £32.3million.

The report shows group company revenue was down 5.9per cent to £41.4million with a sales increase in North America of 6.2per cent to $36.0m (£20.6m), offset by a sales decline of 19.9per cent to £20.8m in the UK.

Group net debt of the international company, and largest manufacturer in the Ribble Valley, now stands at £23million.

Earlier this month bosses accepted, subject to shareholders approval, a £58million offer for sale from Latium Holdings, led by Sale Sharks rugby team owner Brian Kennedy.

Two other firms Merchant bankers Resilience Capital Partners LLC, based in Ohio, USA, and private investment company Berggruen Holdings, with bases in New York, Los Angeles, and Berlin, sparked a bidding war when they revealed they were considering a bid.

But they announced in a statement after the interim results were released earlier this week that talks with the company had terminated.

It read: "We do not intend to make an offer for Ultraframe, in light of various conversations with our advisers since its statement of interest on June 12."

Rod Sellers, Ultraframe chairman, said: "The board continues to believe that the offer from Latium remains in the best interests of our shareholders and our employees.

"The directors unanimously recommend that shareholders accept it ahead of the closing date this Friday."

Currently almost 50per cent of shareholders have accepted the offer.

If 90per cent do not accept by Friday the offer could fall through.