UP to 70 jobs are being lost in Malvern with the closure of one of the town's longest-established businesses.

And the site of Co-operative Cleaners Ltd, also known as Society Linen, in Yates Hay Road could be redeveloped with up to 42 houses.

The company, which has occupied the site since the 1930s, was given outline permission in January 1998 for the redevelopment, which was renewed in January this year.

Vivien Tipping, USDAW shop steward at the plant, confirmed that all the staff have received redundancy notices.

She said they had not been offered alternative employment within the Co-operative. She said: "They have got a cleaning firm, Paragon from Cheltenham, to come in and offer a few jobs.

"But many of the people here have commitments in Malvern and they cannot travel to Cheltenham and back every day."

Mary Phillips, who works at the plant, said: "It's a disaster for the community, a disaster for the workers and a disaster for the customers.

"We didn't just do business locally, but with places all over the country - top hotels, hospitals, the Army and all sorts. It's a real blow because everyone enjoyed working here."

Miss Phillips' fiance, Robert Guest, another employee, said: "It's terrible news. This is a great place to work and it has always had a real family atmosphere.

"I met my fiancee here and we were planning to get married, but what can we do now? There are people who have been working here for 35 years. What will happen to them?"

A statement issued by the company to the Malvern Gazette confirmed the closure and said: "The decision has not been taken lightly, but after six years of unprofitable trading and the considerable losses that have been incurred recently, we cannot allow the situation to continue."

Roy Dalby, chief executive of Co-operative Cleaners Ltd in Nottingham, said it had not been decided what to do with the site.

Any developer would have to submit an application for full planning permission, which would include the number of houses. The plan would have to be approved by Malvern Hills District Council, which has previously estimated that up to 42 houses could be accommodated.