Ducal's factories in Andover, Hampshire, and at Bridgend, south Wales, are to close on 6 July, 2003.

Company bosses confirmed that the move will put 520 jobs at risk.

A spokesman said the action was being taken "to resolve the trading and financial problems of the business".

The Ducal brand, owned by Silentnight Holdings Plc, will be relaunched as part of Cornwell Parker Cabinets.

Cuts 'unavoidable'

Mary Czulowski, managing director of Cornwell Parker Cabinets, said she regretted the job losses, but described them as "unavoidable".

Support services and advice will be offered to all those affected and negotiations will take place with the unions.

Employees were told the news at a "special company briefing" on Friday morning.

Ms Czulowski said: "We are taking the company back to its roots and will continue to promote its key brand strengths."

Declining sales since 1998, increasing costs and tough competition from foreign imports have all been blamed for Ducal's troubles.