The supermarket struck a deal with the stationary firm for the sale of its site on Waterloo Road, which will remain unaffected by last week's news, because Tesco has an unconditional contract to buy the land.

Felix Gummer, Tesco's corporate affairs manager for Wales, said: "It is very sad news that Setten and Durward has been placed into the hands of administrators.

"We were hoping that our investment in the site would have allowed them to operate as before so we are very disappointed to hear that they have gone into administration.

"But the news won't affect us as we already have an unconditional contract for the site."

Welsh Conservative leader, Nick Bourne, this week pledged to do all he can to save Setten and Durward, which is currently being run by administrators, PricewaterhouseCoopers.

Mr Bourne said: "It is absolutely vital that this company is purchased as a going concern. The loss of so many jobs to a town like Llandrindod would be devastating.

"I have written to the Minister as a matter of urgency on this issue and I personally will do all I can to help save Setten and Durward."
Meanwhile, Alun Davies, AM for Mid and West Wales, met with union officials and company management this week, as the search for a buyer continues.

He said: "Having met with union officials and management from the company I am assured that the administrators are looking at all potential avenues to secure these highly skilled jobs.

"It is heartening that during what must be an extremely difficult time, the workforce have shown their support for the company. The staff team are brilliant showing loyalty to the company by continuing to meet orders.

"I will be keeping in close contact with the current management team, the union and the minister to ensure that everything is done to prevent this company closing.

"Not only would that be bad news for the 150 or so employees but other local companies will also feel the negative benefits of any factory closure."