WORKERS at a closure-threatened Valleys factory are suffering more bad news - there is a gaping hole of around £2.5 million in their pension fund.

Last week we revealed that 300 workers at the Carpets International factory in Crumlin face redundancy after the Bradford-based company went into receivership.

The Transport and General Workers Union (TGWU) which represents the majority of staff at the plant, admits there is a large shortfall and that there is no legislation to ensure any prospective buyer makes up the difference. Lawrence Long, the TGWU representative at Crumlin, said: "Obviously the workforce has a number of major concerns including the fact that there's a hole in the pension fund of at least £2.2 million - possibly more."

A spokesman for the union later confirmed the deficit was likely to be around the £2.5 million mark.

She added: "We think the company can be sold as a going concern. "As far as we are concerned, a good employer would fulfil the workers' pension rights because we believe a pension scheme is part and parcel of all terms and conditions. Unfortunately, in law it is sifted out and we don't think that is fair."

Islwyn MP, Don Touhig, said: "This gives us concern because of what happened with ASW in Cardiff. The extent of the deficit is not yet clear, but if it is as suggested, it is a further blow to the workforce.

"I'm involved in talks with the unions and the receivers most days about the extent of the deficit."

The Argus understands there are at least two potential buyers involved in negotiations with PricewaterhouseCoopers.

One is said to be a management buy-out team led by current Carpets International managing director Jim Taylor.

This would involve the acquisition of the Crumlin factory to be run as a stand-alone business.

The second party is believed to be giant Belgium-based carpet maker Associated Weavers International, which is interested in the Crumlin site and a factory in Northern Ireland.

Representatives of Associated Weavers may inspect the Crumlin site today.

A spokeswoman for PricewaterhouseCoopers said she couldn't confirm or deny the bids for fear of prejudicing ongoing negotiations.

She said: "As soon as we've struck a deal we'll make an announcement."