A union leader today said plans to shut a Keighley factory will "devastate" the town.

Silentnight Holdings Plc yesterday told 220 shell-shocked staff that it planned to close its cabinet factory in Dalton Lane.

Gary Baker, GMB organiser, said staff had been told the company was starting a 90-day consultation period to discuss what to do as there has been a decline in the market.

"Since the New Year staff have been working different shifts, but they didn't realise the severity of the problems," he said.

"Keighley has seen Ondura shut its doors as well as the IMS call centre in recent weeks.

"This news is devastating and will leave Keighley a ghost town.

"I honestly feel that Silentnight has an obligation to the people of Keighley - if it wasn't for their blood, sweat and tears the company wouldn't have been able to run.

"There is going to be no work at all for the people of the town. They are either going to have to take minimum wage jobs, part time work or sign on. This has happened out of the blue. Silentnight has put its shareholders above workers.

"The union is going to put as much pressure as it can on the firm to see what we can do, as Keighley can't afford to lose any more jobs. Keighley will become a wasteland."

Workers leaving the factory yesterday told of their shock at the company's announcement.

"We have been on short time since January, but it was still a surprise," said one woman. "We have 90 days now to see if something can be saved - but it will take a miracle."

An assembly line worker said: "We have been working only three half days a week. There just isn't enough work coming in."

Silentnight will now concentrate all future production of foil cabinet products at its larger Silentnight Furniture site at Sunderland.

Bill Simpson, chief executive of Silentnight Holdings Plc, said: "The proposed closure is the result of an ongoing strategic reviewand will improve costs, efficiency and flexibility."

Silentnight is due to announce its preliminary results for the year ended February 1, 2002 on April 18. The company now expects profit before tax for that period to be about £11.5 million, which is above market expectations.

In November 2000, Keighley staff were among 50 people made redundant at both the Keighley plant and the Sunderland factory. The company closed its bed-making factory at Sutton-in-Craven, near Skipton, in 1994 with the loss of about 170 jobs.