MORE than 130 workers are to lose their jobs just weeks before Christmas after administrators announced they were closing an engineering firm.

The shutdown of Accrington firm Automotive Applied Technologies (AAT) comes just 10 months after a £1million takeover.

Back in January, the new bosses announced an expansion and said they wanted to re-establish AAT as the "thriving enterprise that it once was."

But, after going into administration last month, workers at the Exchange Street plant have been told that no rescue package has been found.

Crisis talks have been held between unions and the administrators, Menzies Corporate Restructuring, but no buyer has come forward.

After a cash crisis it was hoped that the company, which manufactures interior and exterior trims for cars, could be sold as a going concern.

But shocked workers have now been told that the firm has no future and they will all be losing their jobs.

Workers' union Amicus has been fighting to help save jobs at the plant.

A spokesman said: "Meetings with the company will continue and we are trying to look for ways to keep AAT afloat.

"It is terrible news for all of the staff, especially at this time of year."

AAT first hit trouble in 2005 after the collapse of MG Rover. At one time 50 per cent of AAT's turnover had been dependent on MG Rover.

In more recent times competitors in the Far East had impacted on the company.

One member of staff who asked not to be named said: "When Rover went under we thought we were finished but we fought through.

"Now we have heard that the factory will close and it is a nightmare."

In January West Midlands based firm Meba Limited appeared to have saved the firm after its takeover. It appointed another Midlands company Maxillia as office and personnel managers of AAT.

But a spokesman for the administrators Menzies said: "We have been unable to secure a purchaser to keep the business trading due to various operational hurdles.

"Therefore, a decision has been taken to enter into a structured wind-down process which will be completed during the course of December."

AAT has been in Accrington for more than 50 years after forming as Textile Mouldings Ltd in 1951.

It had a peak turnover of £20m as was known as Leprofile and Aries before becoming AAT.