AN electrical engineering company that is one of Malvern's main employers has come to an agreement with its creditors to allow it to continue trading.

Skot Transformers has taken the step to safeguard nearly 70 local jobs.

The company had got into difficulties because of a consignment of transformers supplied by an Italian company which it says are sub-standard.

In a statement issued on Friday, company managing director David Parkinson said: "With the support of Barclays Bank and the company's factors GMAC, Skot Transfor-mers Ltd is undertaking a creditors' voluntary arrangement with its suppliers. This will ensure the future of the 68 jobs in the company. The underlying trade is good, but the company was damaged by product it had purchased from an Italian supplier which did not meet standards.

"This has cost the company a substantial amount of money. Action is being taken against the Italian company, but it could take many months to resolve."

The voluntary arrangement will allow the firm to continue operating while the problem is dealt with.

Skot Transformers has its headquarters at Upper Colwall, but most of its manufacturing work is done in units on the Spring Lane industrial estate, Malvern Link.

The company has been trading in the Malvern area since about 1964, making electrical transformers.

In the early 90s it was taken over by Goodyear Transformers, a company in the Birmingham area.

When Goodyear subsequently went out of business, Skot was acquired by the current management.