BOSSES at a Kidderminster carpet firm have confirmed a restructure that could see dozens of people lose their jobs is aimed at increasing its profit margins.

On Friday, the Shuttle revealed how Victoria Carpets was halting manufacturing at its Kidderminster site, which will become a distribution, warehouse and showroom centre.

But, in a letter sent to staff, Victoria Carpets managing director Phil Hartley said that he anticipated 66 jobs would be lost as a result of the changes.

This is the second major blow within weeks to Kidderminster’s once proud carpet industry following Brinton’s announcement earlier this month that 60 jobs were set for the axe.

The company today said that rapid growth and continued significant demand for their products were the driving factors behind the reorganisation of its UK manufacturing and logistics operations.

Changes will see manufacturing functions at Kidderminster transferred to two other sites while its Midlands distribution services will all move to Kidderminster.

A southern distribution centre will open near London by late 2018 while there are plans for another similar facility up north.

The company said the changes will increase production capacity and improve service levels for customers which, in turn, will improve profits.

Shareholders have been told that the group continues to trade well and that underlying profits before tax will be well ahead of last year.

Geoff Wilding, executive chairman of Victoria PLC said: "The successful growth of Victoria has enabled the group to reassess how best to utilise its manufacturing and logistics capabilities.

“By reorganising our manufacturing and logistics operations, we will continue to grow Victoria’s earnings per share and free cash flow.

“We have done this before, of course. Shareholders will no doubt recall our manufacturing rationalisation in Australia in 2014, which was highly successful with resultant revenue growth and improvement in margins that have been very pleasing.

“Additionally, we remain confident that further significant earnings-accretive acquisition growth, in addition to underlying organic development, can be achieved to create further shareholder value."

Gavin Miller, regional secretary at the Community Trade Union, said the "unexpected" announcement came as a "devastating blow" to members.

Mr Miller said: "This news comes as another devastating blow to Community members and was unexpected. 

"We will be seeking urgent talks with management to address the announcement, our aim is to preserve as many jobs as possible and I would call on the company to make a commitment to honour voluntary redundancy applications at the end of this process.

"This latest announcement coupled with the terrible news from Brintons last week has damaged Kidderminster’s reputation as a carpet making town.  

"It isn’t fair to say it’s the ‘end of carpets’ as Brockways are an example of an excellent manufacturer who have recently increased their workforce and committed to Kidderminster. 

"The frustrating reality for my members and their families is that Kidderminster could still be a carpet manutacturing town but it seems some companies are not committed to this idea."

Wyre Forest MP Mark Garnier added: “It is a tragedy, not only because it comes hard on the heels of Brinton’s announcement last week, but it is yet another nail in Kidderminster’s carpet industry’s coffin.

“This is incredibly sad as it reduces the carpet manufacturing resources in the town to, possibly, just Adam and Brockway.

“From over 20,000 people in the industry 30 years ago to just a few hundred now is a huge decline.

“But it is important that we help the staff affected and make sure they are properly looked after by their employers.

“There will be opportunity for employment in the automotive supply chain and new investments by JLR regionally mean that there are more opportunities for supply chain manufacturing.

“But the historic place of Kidderminster at the heart of the UK carpet industry is all but over and that is very, very sad.”