MORE than 140 North-East workers are facing an anxious Christmas after a chipboard manufacturer confirmed it had gone into administration.

Vertex Panel Products last night offered staff hope that the business could be turned around.

Managing director Joe Martoccia is heading a management buyout of the Shildon-based business.

Mr Martoccia said: "The administrator believes the best option is a fall back to the management team to take the business on.

"This does have the support of the major secured creditor so we are optimistic of a positive outcome."

Bolton-based Vertex bought the business earlier this year from businessman George Reynolds, who sold up to concentrate on Darlington Football Club.

At the time, the new owners pledged to keep on its entire workforce, but Mr Martoccia, while pledging to fight to save the jobs, said last night he could "make no promises".

He said: "I can't promise anything at this stage - it is in the hands of the judge in court, our supply business and our customer base."

But he said he would fight to save the 140 permanent and 40 temporary jobs at the factory.

A programme of taking on more permanent staff rather than agency workers had been put on hold until the management buy-out was more definite, he said.

The company's administration comes after it invested a significant amount of its cashflow to reinvest and make repairs within the plant, leaving less cash to put into production output.

Mr Martoccia added: "We feel it is worth fighting to save the company.

"There is a stigma attached to going into administration, but there shouldn't be."

In July, the plant was hit by tragedy when father-of-two Brian Allinson died in an incident involving machinery in the factory.

* Receiver Begbies Traynor, based in Preston, Lancashire, could not be contacted last night.