THIRTY-EIGHT factory workers have suffered a shattering blow in the run up to Christmas, with news that a Calne firm is laying off almost half of its workforce.

Workers at H&H Electronics' factory, on the Porte Marsh Trading Estate, were told at 4.45pm on Thursday that the company was going into receivership, with the immediate loss of the 38 jobs.

They were asked to go home and not return to work the next day.

Families including the Elliotts from The Knapp, who have not received their final wages, now face the heartbreak of explaining to their children that they cannot afford to buy them Christmas presents.

H&H Electronics specialises in sheet metal fabrication, laser profiling, silk screening and paint and powder-coat finishing and is now in the hands of receivers.

Spokesman Ian Kitts confirmed 38 members of the 85-strong workforce had been made redundant, but that auditors were now continuing trading with a workforce of just 47.

"People still employed by the company in the wake of receivership will be paid, but those made redundant will have to seek compensation for any money owed to them from the Government Department of Employment's insolvency employer fund," said Mr Kitts.

Lynn Elliott, who has five children aged 22 months, four, seven, eight and 18, said her husband Neil felt a failure for losing his job.

"We are still in shock. My husband is ashamed and won't talk about it. He has always worked and he has been at the company for 23 years."

She said it could be months before they receive redundancy payment from the Government.

In the meantime they are receiving a crisis loan for food and electric but have no money for Christmas presents.

"The kids are going to be heartbroken when they find they have no presents on Christmas Day," said Mrs Elliott. "I don't know what we are going to do. We were planning to get them all this weekend.

"It's just been a bolt out of the blue. Part of the company was sold about a month ago and jobs were saved. This is the biggest battle we have ever had in our whole life."