CLOTHING firm Austin Reed is putting its Crewe factory up for sale following a review of the manufacturing side of the business.

Some 500 people work at the factory, based in Weston Road, which is the company's main manufacturing site, and the company has already had some interest over purchasing the site.

A spokeswoman for the company said the Crewe factory would be sold as a going concern and would not be closed down.

She added that they were not able to comment on which companies had shown interest in buying the factory.

Austin Reed chairman, Colin Evans said: "The clearance of a significant volume of slow moving stocks at discounted prices masked the underlying increase in profits which reflects the benefits of operational improvements made in the Crewe factory.

"Following completion of the strategic review of our manufacturing business we have received expressions of interest from potential purchasers.

"In order to maximise value and safeguard our retail supply we are exploring all options to divest of our manufacturing operations in due course."

He added that the overall sales performance had been against a backdrop of difficult conditions in the high street as a result of high interest rates and a strong pound.

"The UK retail environment has experienced a slowdown during the past few months and this is likely to persist in the immediate future," he said.

The group turnover this year was up to £60.5 million, helped by the recent acquisition of Country Casuals.

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