By Ian Brogden

LILLIPUT Lane model-maker Enesco is closing its factory on Derwent Howe in Workington with the likely loss of all 55 jobs.

Bosses stunned staff yesterday by announcing that all but a handful of the workforce would be made redundant within two months.

The move follows a drop in sales of the world famous Lilliput Lane cottage models painted there.

Consultations are taking place with workers at the site.

Enesco says that because of declining sales of their Lilliput Lane miniature cottages, they can no longer maintain their manufacturing unit.

An employee said: “Sales have been falling away, other lines have been tried but people have been sitting around doing nothing. The bad news is that we understand Penrith has not been too busy either.”

The company’s statement said: ”Despite reductions in staff levels last year, the company continues to be adversely affected by declining sales figures for its Lilliput Lane miniature cottages.

“In the light of this, our current thinking is that we can no longer maintain our manufacturing facility at Workington and that there is a need to cease the manufacture of the Lilliput Lane cottages and other products on this site.

“Any remaining production needs will be transferred to our other Lilliput Lane factory in Penrith. There may be an opportunity for a small number of employees to transfer to Penrith.

“It is proposed that consultation will take place at Workington to address how the company might avoid the redundancies or, if these prove necessary, to at least reduce the number.

“The consultation period will commence on Monday April 11 and notice periods for terminations of employment, if any, will commence on Thursday, May 12.

“The recent announcement of the new division, Border Architectural Mouldings, to be based at Lilliput Lane is unaffected as the manufacture of these new products will be at our Penrith site.”

Lilliput Lane was formed by Cumbrian David Tate in 1982 and taken over by American-firm Enesco several years ago.