Hedstrom makes children's play equipment

Workers at the plant in Holyhead, which makes toys, say they had no idea that the business was under threat.

Around 30 staff remain to meet existing orders, with the administrators PricewaterhouseCoopers looking to sell the company.

The administrators said on Friday that one company was showing an interest in buying the factory although no decision was likely until next week.

A spokesman for the administrators said the situation was "very difficult".

"We have evaluated the situation and were forced to make around 100 redundancies, as the company didn't have enough money to pay salaries.

"We are talking to suppliers and customers to see what the future holds for the company."

The unnamed firm interested in the company is believed to manufacture similar goods to Hedstrom, including children's swings and slides.

Meetings will be held with the Welsh Development Agency, Welsh assembly and the Transport and General Workers Union.

The company, a subsidiary of the Hedstrom Corporation which is based in Chicago, has twice changed hands in recent years.

Tom Jones, from the TGWU union, said he has appealed to the assembly for help to save the factory.

He added that he was particularly concerned in the light of other recent job losses on Anglesey.