A Mid Wales town could get a boost of up to 30 new jobs if discussions involving the takeover of the former Floform site get the go-ahead, it was claimed today.

And new jobs are also coming to Newtown where Europe’s leading carpet retailer, Carpetright, is moving into the empty former Woolworths store in Broad Street.

The company involved in the Floform site discussions has not yet been named, but it is believed the move could see work again on the site in Henfaes Lane, Welshpool.

The car parts factory was left empty after Floform entered administration and then ceased trading over four days last month.

A total of 74 jobs were lost after administrators admitted defeat in their bid to save the company. Six workers were kept on to help the administrators keep working at the site.

Bosses at the firm said the loss of key customers was to blame for the closure and continuing to trade was no longer a viable option.

But Glyn Davies, Conservative parliamentary candidate for Montgomeryshire, said he understood an unnamed company was in talks to take over the factory.

He said: “While this is good news, I have also been told that should they complete the takeover of the site, it will not be employing as many people as Floform.

“I have heard it could be 20 to 30 people at most but I don’t want to get anybody excited in case it doesn’t happen.”

Jessica Rudd, of Zolfo Cooper, which is acting as administrators for Floform, said she could not comment on the situation.

Meanwhile, Carpetright confirmed today that its new store would be opening in Newtown. Carly Greening, marketing manager for Carpetright, said “We are delighted to announce the opening of our new store in Newtown at the end of March.

“I can confirm that three staff members have been recruited from the local area, there is also scope for employment of local carpet fitters.”

Councillor Sue Lawson, the mayor of Newtown, said: “There are a lot of empty shops in the town at the moment and I hope this will encourage more companies to move into the town.”

By Andrew Morris and Anwen Evans