Business leaders and politicians have reacted with dismay to news that two more companies in Redruth and Camborne are in trouble.

Established more than 100 years ago in 1886, the Redruth-based Cornish biscuit maker Furniss Foods went into receivership on Friday.

Camborne bookbinding company Neale Dataday closed the doors of its Camborne factory last week with the loss of 20 jobs.

The news is another blow to both towns and follows on from the administration of Redruth Brewery and the closure of CompAir Holman, in Camborne, with the loss of 300 jobs.

Furniss Foods Limited employs 150 people and is famous for its speciality biscuits and other baked products.

Richard Hill, of receivers KPMG, said there were no plans for any redundancies and trading was continuing while efforts were made to sell the company as a going concern.

"There has already been significant interest from various parties and we are hopeful that a sale can be achieved" he said.

Speaking from London yesterday, Falmouth-Camborne MP Candy Atherton said she was disappointed with the news but claimed there was hope on the horizon.

"Obviously I am greatly disappointed," she said "but I am very hopeful something can be resolved. No jobs must be lost at this time.

"I have spoken with fellow members of the Camborne Pool Redruth Regeneration Company and I am meeting with the chairman of the Regional Development Agency today and will raise the issue with him.

"I will continue to work with the company and the community to facilitate a resolution, but there have been positive developments."

Ms Atherton said she would be raising the example of Furniss during an adjournment debate with Government minister, Keith Hill, today about the unique problems the Camborne-Redruth area faces.

Town councillor Barbara Ellenbroek, who runs the Arts and Graphics shop in Fore Street, Redruth, said while it was sad news it was not a disaster for Redruth.

"I think it is premature to say it is a disaster for Redruth," she said. "We just don't know what's going to happen. I would hope somebody would come along and so the business can continue in the future.

The Furniss company grew from a small family bakers, operated by the founder John Cooper Furniss. In its early days it serviced customers primarily within the Truro area and soon become a major player in the gift market throughout the South West. The firm expanded to cover the main seaside resorts by the early 1980s. The Furniss of Cornwall brand is amongst the strongest in its sector and its products are familiar gifts for both holidaymakers and locals alike.

Lib-Dem prospective parliamentary candidate for the area Julia Goldsworthy said she was shocked by the news.

"This year has already proved to be a difficult one for historic businesses in the Camborne-Redruth area. It seems that despite all the work with Objective One, lots of Cornish businesses are still facing real difficulties.

"The first priority is to try to find an investor who will keep the jobs in Cornwall and invest in building the business back up. I will offer any help I can."

Richard Hill and Brian Green from KPMG Corporate Recovery team have been appointed joint administrative receivers of Furniss Foods.