A HAMPSHIRE bed-building firm is to axe almost 100 staff because of the collapse of chain store Allders.

Totton-based Millbrook Beds is slashing one in four of its workforce after losing the key Allders account.

Huge debts forced Allders into administration and the 45-strong chain is now in the process of being broken up, leaving suppliers with holes in their order books.

The loss of Allders' business was part of a devastating "double whammy", said the company, which was also reeling from a sharp slowdown in orders due to disappointing January sales.

Millbrook Beds, a division of Millbrook Industries, employs 366 people at its manufacturing site in Calmore and expects about 92 workers to go, from "right across the board".

The family-owned company has four divisions, of which Millbrook Beds is the only one affected. It is now contacting other manufacturing firms in the area to try to find new jobs for staff. Bosses are also keen for voluntary redundancies where possible.

Managing director Mark Croll said: "We have been significantly affected by various factors. There have been recent price increases in our raw materials costs, the January sales performance, and the loss of a major client. To safeguard the company and the remaining workforce we have had to make some very difficult decisions.

"This is an unhappy time for all of us. No company wants to be in this position and to be announcing redundancies."

A spokesman said the company aimed to recover the Allders business and then may start hiring again.

Workers' representative Bob Thomas said: "We were aware of the situation with Allders and there was a lot of concern about it, so this wasn't a shock, but it was a bit of a surprise. There is definitely still concern out there and people are anxious about their futures but there are regular briefings."

Sewing machinist Jenny Brothwell said: "We were all a bit gobsmacked. Everybody is worried about whose jobs are going to go but everyone is staying cheerful."

Started as a small upholstery business by Walter Croll in 1946, Millbrook Industries remains in the Croll family today, with Mark Croll the third generation of the family to take the helm. It now employs 750 people, with a turnover in the region of £45m.