Hopes that 100 jobs at Colchester's specialist Army clothing agency would remain in the town are likely to be dashed.

After three years in limbo, staff at the Defence Clothing and Textiles Agency, formerly known as SCREDE, may soon be told the organisation will close its Flagstaff Road base.

A decision is due to be made in the next few days by the Government.

The operation, which makes uniforms for soldiers, sailors and airmen, may relocate to Bicester in Oxfordshire.

Most of the staff are civilians living locally who may have the opportunity to relocate.

The agency's chief of staff Wing Commander Steve Caunt refused to confirm if the Colchester branch would close.

He said a study detailing options for the future were currently being studied by the Armed forces minister who would decide soon what should be done.

He said: "We are awaiting a ministerial decision this week. It is possible he might ask for further advice or might not accept the recommendations."

But other sources indicate it is unlikely the branch will remain in Colchester.

Three years ago the Government announced the agency's move but the matter was reviewed last year as part of a major strategic defence shake-up.

Last October staff were hopeful that the agency would win a reprieve.

If it does close it will be another blow to the town, still reeling from last week's announcement that sweet factory Trebor Bassett is to close its Colchester factory with the loss of 202 jobs.

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