A further 57 jobs have been lost at iconic Mid Wales fashion and furniture brand Laura Ashley, as bosses warned staff that the future looks bleak for the local manufacturing operations.

Chief executive Katharine Poulter said it is "increasingly unlikely" that shops and factories will remain open despite "progressive" conversations with a prospective buyer during the last few weeks.

The brand was snapped up by a buyer in the USA last month, but the deal did not include the shops and factories. Laura Ashley still has factories and a shop on the Mochdre and Vastre Industrial Estates in Newtown.

But now the future looks bleak for the sites.

In a letter sent to employees on Monday, June 16, Ms Poulter said: "Despite some progressive conversations with a prospective buyer in these last few weeks, it is now increasingly unlikely that we will be able to secure a going concern for our UK and RoI retail and manufacturing operations.

"The administrators remain open to interest in the business; however, they have a duty to act in a way that benefits all creditors and therefore their attention must turn to the stock disposition exercise and liquidating the assets of the business. They do not have the funding to retain those who are not directly involved in that process and, therefore, it is with a heavy heart that we will lose 57 of our colleagues.

"While the brand living on is to be celebrated and we very much look forward to seeing how Laura Ashley will reappear on the horizon, I know for many of us this will feel like a very sad day – for the communities we are a part of and help prosper.

"We left absolutely no stone unturned in our quest to save the UK and RoI operational heart and soul of the business and make it great again."

The company went into administration in March and said the coronavirus had "an immediate and significant impact on trading and ongoing developments indicate that this will be a sustained national situation".

Administrators PwC (PricewaterhouseCoopers) said the news was "extremely disappointing".

Rob Lewis, joint administrator and PwC partner, said: “It is with real regret that we have to announce redundancies at what is already a challenging time for individuals dealing with Covid-19 disruption. We will, of course, provide all affected staff with the necessary support, which will include working with various agencies and employers who have vacancies.

“The company is continuing to trade to sell the stock on hand and we would like to extend thanks to all Laura Ashley employees for their continued support, service and cooperation both before and during the administration.

“We still believe there is value in the group and we remain open to interest however, should a going concern sale may not be possible we may be required to initiate a controlled store closure programme.”