AN estimated 60 jobs will be lost as part of a deal which has seen Wangaratta's Bruck Textiles sold to Australian Textile Mills.
The transaction was announced today by Geoff Parker, the former chief executive of Bruck Textiles who will now take on the same role at ATM.
He said the plant, which had specialised in supplying textiles to industries including automotive and defence since 1947, had become "squeezed into unprofitability" following major downturns in the market.
ATM would invest $8 million into the business but staffing numbers are expected to be reduced from 180 to around 120.
"Moving forward, ATM has implemented an aggressive marketing and business development plan to augment existing orders," Mr Parker said.
"We are confident we can reposition the newly acquired business into a very profitable supplier of specialty textiles for the domestic market, while continuing to make inroads into a number of international markets in coated fabrics."