FEARS are growing for scores of workers at a historic yarn firm which supplied the wool for the school garments in the Harry Potter movies and some of the world's leading fashion houses.

Staff at Z Hinchcliffe in North Ayrshire have been told their jobs are at risk as the blames a drop in demand for woollen wear, blaming a succession of mild winters.

The 200-year company has 87 staff and has been based in Dalry since 1967.

All the Hogwarts schoolwear in the Harry Potter series worn by the lead characters and extras were manufactured from Z Hinchcliffe's wool.

It also claims that Prada, Gucci, Chanel. Brooks Brothers, Saks Fifth Avenue, Hugo Boss, Burberry, Dunhill and Polo Ralph Lauren "are just some of our prestigious customers who appreciate our excellent products".

The firm also operates a factory from its historic base at Denby Dale, West Yorkshire, and has denied its plan is to simply shut its Dalry plant and shift its operations to England.

It said both firms were over capacity with low orders due to a lack of demand for woollen products.

It is the second time in three years the firm's Dalry plant has teetered on the brink, with economic development quango Scottish Enterprise stepping in to help rescue the Ayrshire operation.

Director Robert Hinchcliffe said: "We have a situation where unfortunately we have had two successive mild winters and a drop in demand for our product. This has left us with more capacity than orders to fill. We have a capacity at both Dalry and in Denby Dale, Yorkshire. We cannot run two factories at such inefficient levels.

"As demand has not picked up we have had to give the news to staff that we cannot go on like this and are trying to find a buyer to safeguard the jobs. I really can't say any more than that.

Asked would the operations shift to the firm's base near Huddersfield, he said: "I have told the MSP that the dyeing and binding of the wool is done in this base in Yorkshire. But we are looking at talks with potential buyers."

Local MSP, the SNP's Kenny Gibson said that prior to the workforce being given the news, "no-one had any inkling" the plant was in jeopardy.

He said: "Indeed, Scottish Enterprise said that just three months ago, in one of its regular meetings with the company that all appeared to be ‘hunky dory’.

"One would have thought, given previous experience that any difficulties would be advised by the company to Scottish Enterprise, SDI or myself, in order that we could again assist in ensuring Z Hinchcliffe survives in Dalry.

"I discussed with the directors the reason for the company’s current plight and the way forward. It was difficult to get any sense out of what the company hopes to achieve. I don’t think that beyond disposing of Dalry and concentrating work in Yorkshire they really know.

"I believe that a buyer is genuinely being sought. However, Scottish Enterprise have been frustrated that Z Hinchcliffe will not let them look for another buyer, which is obviously cause for concern. The workforce too has been kept pretty much in the dark."