The firm has suffered heavy competition from imports

Carpets International employs 1,200 staff at seven sites across the UK including 320 at the south Wales factory.

The workforce were informed late on Wednesday afternoon - it is hoped the business can be sold as a going concern.

Peter Booth of the National Organiser of the Transport and General Workers Union, said he was shocked by the announcement.

"Hundreds of jobs across Northern England, Wales and Scotland are at risk," he added.

PricewaterhouseCoopers (PwC) has been appointed as receiver.

Bradford-based Carpets International is Britain's largest carpet manufacturer with an annual turnover of around �100m .

It supplies an number of High Street retailers and traders and trades under the Kossett, Wilton Royal and Abingdon brands.

But in the last 12 months the firm has suffered heavy competition from imports and falling demand in the UK as consumers moved away from traditional floor coverings.