Aquascutum has decided to close its UK manufacturing plant.

The luxury British clothing company - which announced it had gone into administration earlier this week - says it was a very difficult decision but had to do it due to ''loss-making operations and a lack of funding''.

A spokesperson for the administrators said: ''Whilst a difficult decision, it has been necessary in order to stem on-going losses for the business, and to protect the positions of the 135 remaining employees. We plan to provide appropriate assistance to all affected employees, including liaising with Jobcentre plus and helping with claims to the Redundancy Payments Service. All head office and retail operations across the UK and international high street, concession and outlet stores are operating as usual at present.''

The company is in the process of looking for a buyer, and is hopeful that a suitable investor will be found soon.

The spokesperson added: ''We have received a high level of interest from potential purchasers from around the world, with our focus now upon progressing discussions for a sale of the Aquascutum brand and assets,''

Founded in 1851, Aquascutum - which has three UK stores, two in London at Westfield (White City) and Canary Wharf and one in Windsor, along with 16 concession shops - has been worn by Cary Grant, Humphrey Bogart and the late Queen Mother.