WORKERS at Burnley's Papermarc factory have spoken of their shock after hearing the company had folded with the expected loss of more than 200 jobs.

Workers have been told they will not now receive wages which were due on Friday, but have been reassured by administrators that they could be eligible for state benefit redundancy.

Administrators were today continuing negotiations with the unions and management to try appease creditors, suppliers and employees, but the future for the firm, one of the town's major employers, is now looking bleak.

There is no cash to pay bills and staff have been told they will not receive wages.

The firm has sites at Caldervale Road and Bancroft Road, Heasandford, both of which have ceased trading.

Staff arriving for work on Tuesday and yesterday were told there was no work for them and they would not be paid. They were told to go to work for a meeting on Friday.

Mechanical technician Paul Robinson, 35, who travels to the firm from his home in Bolton, said: "The first we heard is when we got a call from a mate who turned up for work and was turned away. I'm owed six weeks' wages, which it doesn't look like I'll get.

"I've managed to get myself another job, but there are others who will be in real trouble."

Another man, who asked not to be named, said: "I don't know what I'm going to do. This has come as a real shock to everyone. I'll have to try to arrange an overdraft."

John Spencer, GPMU representative at Papermarc, said: "The administrators have only just started looking at everything.

"The union has a meeting with them on Monday. It'll be at least eight weeks before anyone gets any money, so there are tough times ahead for 280 blokes. There is a meeting tomorrow for the administrators to give the lads forms for state benefits for redundancy."

Administrator Jeff Jones, of firm BDO Stoy Heyward, said: "Papermarc and Papermarc Merton Packaging, are in administration after they found themseves in a position where they could no longer continue trading. They were unable to pay wages or suppliers.

"We will seek some continuation of each of the two businesses if it makes commercial sense, try to find the best solution for the creditors and the employees and will fulfil customer orders where we can."

The company, which employs around 250 people, went into administration last year but continued to trade until it was bought out four months later.

The firm was formed in June 2000 with the purchase of the Paper and Board Mills in Burnley from the Jefferson Smurfit Group.