THE economy of both Ashburton and Buckfastleigh could be put at serious risk if an old-established carpets company goes into administration today.

Axminster Carpets employs around 150 staff from the two towns on top of 400 more at its headquarters in east Devon.

Its subsidiaries here are Buckfast Spinning Company and Devonia Products, in Buckfastleigh. The former has about 120 staff, the latter around 30.

And real concern has been voiced for the future of the local economy.

Buckfastleigh's mayor, Cllr Denise Rudgley, described the news as 'a devastating blow for the whole town'.

And her Ashburton counterpart, Cllr Elaine Baker, warned of 'a major impact' on the town.

Central Devon MP Mel Stride, who lives in Ashburton, has promised to do what he can to soften the blow should it come.

The company has found trading difficult and has been working with various outlets to resolve financial difficulties.

It will continue to trade normally while it explores 'all potential rescue/restructuring options.

But workers have expressed little hope so far.