FORMER Lancashire Evening Telegraph businessman of the year, Steve Hollis, has moved a stage closer to taking over two of East Lancashire's leading aerospace companies.

Cleveland Guest in Colne and Pendle Aeroform in Burnley are part of the aerospace division of the troubled Midlands-based L Gardner Group PLC.

Mr Hollis has now resigned as chief executive of the group and the company has confirmed he, along with two fellow directors, would be looking to buy its aerospace businesses.

Faced with crippling debts, L Gardner is planning to sell its aerospace operations and has appointed receivers for its automotive division.

The Colne and Burnley factories, which employ around 200 people, are among 11 companies which make up the Gardner Aerospace group.

L Gardner said talks had begun with a number of financial institutions to create a new company to acquire the aerospace subsidiaries.

In a statement to the Stock Exchange, L Gardner said substantial losses were being incurred in its non-aerospace subsidiaries. Despite extensive efforts, it had not been possible to find purchasers for these companies. Steve Hollis won the Lancashire Evening Telegraph business person of the year title for his success in leading a management buy-out of Cleveland Guest.

The Colne site, which supplies precision-machined components to major aerospace firms, it was bought by L Gardner in 1998.

Pendle Aeroform supplies a range of precision manufactured components to a number of companies including British Aerospace, Shorts, Boeing and Hurel Dubois. The company was bought off receivers by L Gardner in 2000.