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Gaskell is to sell its tile division, including sites in Lancashire and London, to Low & Bonar for £17m, while its carpet factory in Kidderminster is expected to close with the loss of 70 jobs.

Gaskell has sold Mid-Wales Yarns, its Powys-based yarn-spinning business, to Fred Lawton & Son for a nominal sum, securing the future of 100 jobs.

Gaskell has sold the Crucial Trading business of Tomkinsons to Headlam Floorcovering Distributors for £1.8m, as part of a strategy to focus on its contract carpet tile and broadloom activities.

Gaskell is to acquire Tomkinsons, the carpet company, for £11m, and closures at the combined group's 10 plants have not been ruled out.