AUSTIN Reed is set to end production of its machine-made garments at the Weston Road site in Crewe this July.

The move follows the decision to reorganise the manufacturing business but the Group will be continuing to develop the associated Chester Barrie hand tailored clothing business in Crewe.

The move follows the decision to close the Donegal shirt factory in Ireland at the beginning of this year.

"The reorganisation represents the best possible way forward for our business in Crewe," said Austin Reed chairman Colin Evans.

"We are operating in a highly competitive market and the changes are unavoidable. They have been brought on by tough market conditions and the need to cut costs."

Colin Houlihan Managing Director said the reorganisation was due to a strong pound meaning exports were more expensive and there was a retail recession.

He added that the best way to secure the long term future for employees at Chester Barrie was to reorganise now.

"The decision to cease producing engineered clothing has not been taken lightly and any subsequent job losses are regrettable," he said.

"By acting now, we can ensure that our business is in a position to develop the excellent prospects of our unique Chester Barrie tailoring operations.

"We believe this is the best way to protect remaining jobs."

The company is now entering a period of consultation with the employees who may be affected along with unions and other interested parties.

Mr Houlihan said it was too early to know how many employees would be affected.

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