THE jobs of 300 workers at a Gwent carpet factory have escaped the axe as receivers try to sell the business.

Receivers acting for Carpets International are to make 296 people redundant across the UK, but the jobs of all 300 workers at Crumlin are safe for the time being.

The firm went into receivership last week, blaming a downturn in the market for carpets for the firm's financial difficulties.

Roger Marsh, of receivers PricewaterhouseCoopers, said he was disappointed that it had been necessary to announce redundancies.

But he claimed the move would allow the company's main manufacturing sites at Crumlin and Donaghadee, in Northern Ireland, to continue operating while he and his colleagues tried to arrange a sale of the business.

He said: "We are encouraged by the initial levels of interest that have been expressed.

"But time is required to determine whether this will convert ultimately into firm offers for the business as a whole or in parts.

"We are grateful for the continuing support received from key customers, suppliers and the workforce."

Islwyn MP and Under Secretary of State for Wales Don Touhig welcomed the fact that the Crumlin jobs had been spared the axe. He said: "The workers at Carpets International in Crumlin do a first-class job using good machinery. The factory is still operating as a going concern."