'Heads we lose, tails we lose' – that's the prospect for employment in Heathfield, according to Teignbridge MP Richard Younger-Ross, who is to investigate the consequences of a merger of two home shopping giants at the centre of a looming jobs crisis.

Mr Younger-Ross explained: 'The original concern was raised following the decision by home shopping company GUS to close its business, resulting in 19,000 redundancies nationwide, 100 of which would be at the firm's Heathfield warehouse.

'Then Littlewoods – which also employs around 100 staff at another warehouse on the Heathfield Industrial Estate – stepped in and bought its rival, but a subsequent referral to the Office of Fair Trading means that trade and industry secretary Patricia Hewitt is now deciding whether or not to allow the merger to proceed.'

However, Mr Younger-Ross is concerned that, whatever the outcome of the competition commission investigation might be, jobs will still be lost.

He said: 'If the merger is not allowed, then the GUS jobs will go, but our problem is if they do merge, history tells us that job losses are still likely – it's heads we lose, tails we lose.'

A spokesman for GUS was unable to comment on any specific job cuts, saying only: 'GUS sold its home shopping business to March UK as part of an unconditional deal in May.'

For March UK Ltd – Littlewoods' owners – a spokesman responded by saying: 'March UK believes it has a very strong case in front of the competition commission, and that without this merger, jobs will almost certainly be lost.

'We are looking to improve the home shopping industry and are willing to invest to achieve this. In the short to medium term, the jobs at Heathfield are safe, but until the commission reports in January it is too early to predict anything further.'

Mr Younger-Ross has already spoken with Littlewoods' chairman David Simons to express his concerns, and is arranging to visit both of the Heathfield operations in order to 'get a clearer picture of what is going on'.

During his visits, the date of which has yet to be confirmed, the MP intends to canvass staff representatives and to decide whether or not to support the merger.

He concluded: 'Evidently, there will be job cuts and I will be looking to find the best solution for Teignbridge.'

The competition commission is due to complete its report by December 23 and its publication is expected in mid-January.