Talks to keep sports car company, TVR, in Blackpool have collapsed.

Workers were told the news today in a mass meeting at the Bispham factory.

More than 250 workers now face redundancy in the New Year.

The car firm are more than half way through a 90-day consultation with unions after owner, Nikolai Smolenski, revealed plans to out-source production of the prestigious sports two months ago.

Workers at the Bristol Avenue site had hoped that bosses of collapsed Speke car firm, Jenson Motors, would resurrect the defunct sports car brand after it was revealed in the Citizen that unions, council chiefs and an un-named consortium, believed to be former managers of Jenson Motors, had been locked in talks.

It is understood the Jenson Motors consortium have pulled out but the Citizen has learned that there is another party interested who are in talks today with bosses at TVR.

A spokesman at TVR confirmed the company, at the invitation of Blackpool Council, had taken part in discussions with a number of parties who expressed an interest to the council in starting a new automotive business at the company's Blackpool factory.

None of these plans has come to fruition, according to TVR bosses, and the company now plans to conclude discussions with the Transport and General Workers Union (TGWU) on redundancy terms for TVR staff.

It is anticipated that these proceedings will be completed by the end of the year.

Managing director of the firm, David Oxley, said: "We have been in regular contact with Blackpool Council and have been working closely with them on the viability of a number of proposals.

"We regret to have to confirm that these have now all been withdrawn, so we must finalise our plans to close the factory.

"We understand this will be extremely disappointing to the remaining workforce and the town of Blackpool, but we must now find a viable way of securing the future of TVR.

"We remain convinced that our plans announced in October to outsource all production are the right way to take the company forward.

"We will announce the detail of our outsourcing plans in the New Year."

The company announced on October 18 that all production was to be out-sourced.

Formal consultation on redundancy has continued with staff and the TGWU while talks have been held with Blackpool Council and the Northwest Regional Development Agency.

Staff were informed on November 9 that the company had no plans to re-start production and as a result 158 people were laid off.