Receivers dealing with the troubled Action Maker's factory in Bala say they are close to negotiating a deal with a prospective buyer.

Tenon Recovery is in active discussions with an interested party to take over the site where 110 workers were made redundant on Monday.

About 110 jobs are at risk

"A contract has been issued and we hope to conclude the negotiations shortly," said a spokesman for Tenon.

It is not yet known how many of the jobs would be saved.

Staff at the scaffold-making company had turned up to work as usual on Monday morning, but were sent home after being told the business had stopped trading.

The firm, which operates from Bala's industrial estate, manufactures and supplies scaffolding, stairs and ladders to Europe and Australia.

Vulnerable

Local MP Elfyn Llwyd and AM Dafydd Elis Thomas have both been involved in talks with the owners and the WDA.

The company, which had a turnover of �8m, has been established in the town for about six years but was taken over by new owners 18 months ago.

Gwynedd Councillor Dylan Edwards said the Bala area was particularly vulnerable to job losses in industry.

"This is one of the largest employers in Bala," he said.

"The problem here is there is nothing in reserve when something like this happens.

"In other Gwynedd towns like Dolgellau, Caernarfon and Bangor, local government and university offices provide alternative employment, but there is nothing here.

"I would like to see more white collar jobs coming to Bala and the relocation of administrative offices here," he added.