Staff at J H Birtwistle in Rossendale, part of the John Lewis Partnership, were told the restructuring was needed to secure the company's future.

A spokesman for John Lewis said Birtwistle's future had been in some doubt because of a period of difficult trading conditions.

He said a final decision on the future structure will be made next month.

Consultation process

A consultation process is under way.

The company said the general market for printed fabrics had changed greatly over recent years with a growing proportion of the volume market coming from the Far East and Eastern Europe.

It also said the relative weakness of the UK retail sector since the beginning of 2005 had put further pressure on the business.

John Lewis commercial director Brendan Sweeney said: "In making the announcement we are of course conscious that it will come as a disappointment to 40 of our partners who will be directly affected by the proposed redundancies."