MORE jobs have been lost in another black week for the North-East economy - and more could follow next week.

Bosses at Hugh Mackay Carpets in Durham, which has supplied Buckingham Palace, the Savoy Hotel and Caesar's Palace in Las Vegas, have told staff 50 jobs must go from its 231-strong workforce.

And an announcement is due within days on the future of Sloman Engineering, in Newton Aycliffe, which is in receivership. It has already axed 35 jobs from its 126 staff.

The remaining employees claim they have been told that the receivers are unable to find a buyer for the company.

One worker, who asked not to be named, said: "There is a lot of bad feeling among the people who have stuck it out and worked with the administrators. We've had some German people round looking at taking out all the machines."

Sloman, established 14 years ago, makes components for the automotive industry. One of its largest customers is the Cummins engine plant, in Darlington.

The worker added: "We just can't believe that a place with so much work has got into such troubles."

Administrators KPMG are expected to release a statement on the future of the company next week.

Last week, two companies on the Skelton Industrial Estate in east Cleveland issued nearly 300 redundancy notices to staff. Texon UK, which makes components for the shoe industry, could close its plant with the loss of 234 jobs, while workwear rental firm Hirelin plans to transfer 90 per cent of its work to Gateshead.

Administrators also moved into Ohmega Electronics in Bishop Auckland, which employs 70 people.

Officials from the Transport and General Workers Union (TGWU) are in talks with staff at Hugh Mackay Carpets over the possibility of taking voluntary redundancy.

Nick Halton, TGWU regional industrial organiser, said: "Hopefully, we can save some of the jobs."

The company, on Durham's Meadowfield Industrial Estate, has already closed its exclusive London showroom in a bid to cut overheads.

"The company has assured me that once it has made these cuts, it can substantiate its sales and hopefully become more stable," he said.

No one from the firm was available for comment.