TOMORROW marks the beginning of the end for Terry's chocolate factory in York.

Almost 70 employees will lose their jobs in the first wave of a phased redundancy programme, culminating in the factory's closure later this year.

The redundancies come as more than 100 jobs at Allders stores in York and Knaresborough hang in the balance, following the appointment of administrators for the national retail chain.

There are 43 jobs under potential threat at the Allders At Home store in Piccadilly, York, with another 42 at the Clifton Moor Allders At Home, and 24 at Allders on the St James retail park, Knaresborough.

But hopes were still being held out today that the troubled 45-store group, with its HQ in Croydon, London, could yet be sold as a going concern, saving up to 7,000 jobs across the country.

The administrators, Kroll's, said: "Interest has already been expressed by third parties for the business and the administrators are hopeful that a going concern sale can be achieved."

Staff turning up for work today told the Evening Press they had been advised not to comment to the media.

Meanwhile, Kraft said that the first redundancies at its Bishopthorpe Road works had come after it had begun switching confectionery production from York to other factories in Europe.

But the company and unions were agreed that many employees finishing work this week had been successful in finding alternative employment.

A Kraft spokesman said it was believed that about two-thirds had received job offers or decided to go self-employed or take early retirement. "We continue to provide support to others in their search for other opportunities."

Union spokesman John Kirk said staff had found jobs at a variety of other locations in the area, including Sundora Foods, at Pocklington, the hospital and CPP and the confectioners, Monkhill, with some also applying for work at Nestl Rowntree.

He said another wave of redundancies would come next month, with further losses in April, June/July, and the final redundancies in August with closure.

Vic Botterill, union shop steward at Terry's, said that while there were jobs available in the York area for redundant staff, many did not pay as much as they had been earning at Terry's. He said staff were saddened, but reconciled to the factory's closure.

Plant director John Pollock said: "This a very sad moment for everyone at the York site, in particular the employees who leave tomorrow.

"I would like to thank them and all their colleagues for their commitment, flexibility and hard work over many years.

"Employees have shown tremendous professionalism since the announcement last April of our intention to close the plant, and the progress achieved with the transfer of production to other sites is a credit to all concerned."

The company said employees had been supported with appropriate settlement packages and assistance in their search for alternative employment.

Updated: 10:00 Thursday, January 27, 2005