The Guiseley-based Leeds Group has announced the sell-off of its remaining UK textile dyeing divisions.

The firm, which started life specialising in the sector, is off-loading its Scottish dyeing operation in a management buy-out deal expected to raise £6 million.

The company now aims to focus on its successful leasing business - a change of direction it says was necessary because of a Europe-wide decline in textiles.

Chairman Robert Wade said: "After spending my career helping to build one of the more successful textile companies in Europe, it is inevitably disappointing to concentrate my last year on dismantling it."

During the last few decades the company has bought several local mills, including dyeing and finishing firm Scott & Rhodes, in Yeadon.

But latterly it has reversed the trend and closed both Walsden Printing in Todmorden and Strines Textiles in Stockport earlier this year.

John Lambert, director general of the Bradford-based Confederation of British Wool Textiles, said: "The Leeds Group had been a major company in textiles and its withdrawal from the sector is very sad for the industry."

The firms being sold include the Langholm Dyeing operation in Dumfries and Galloway and Schofield Cloth Finishers in Galashiels.

Details of the buy-out, which will go before shareholders for approval on January 16, emerged as the company published its financial results for the year ending September 30, 2001.

The figures showed a massive increase in pre-tax losses from £3.7m last year to £15.2m.

Leeds Leasing, however, increased profits by 15 per cent and contributed £887,000 before tax and exceptional costs of £2.2m.