TRADERS at a mill which went into administration have been locked out of the building by security guards.

Swan Lane mill was closed yesterday, keeping firms out of their premises.

Security guards claimed they were acting on behalf of administrators called in by Lloyds TSB bank, which remains the owner until the new buyer takes over .

It is believed a water leak has forced the administrators, Allsops, to turn off the sprinkler system, preventing businesses from entering and working in the mill on health and safety grounds.

The mill was sold for £495,000 but Lloyds TSB bank remains the owner until the sale is finalised on December 23.

There were angry scenes at the mill gates yesterday, when around 50 business owners and staff turned up to try to gain access through the main gates, which had been chained shut. Around 14 businesses say they have to get inside as they have orders to fulfil and suppliers bringing in yarn and other materials.

Attempts to contact solicitors representing Lloyds TSB failed. The dispute is a civil matter but the traders themselves called the police as they were considering cutting through the chain.

Latif Jiva, who runs Rosemead Designs, was acting as leader for the tenants association at the mill, which represents 14 traders.

He said: “The tenants need access to get their deliveries out and let suppliers in.

“They are now trying to negotiate new leases with the prospective new owners as quickly as possible.

“But we have all lost orders and it will cost them thousands of pounds as they have to tell their customers they cannot deliver at the moment.

“We will still be taking legal action against Lloyds TSB as they have given us no formal notification of the health and safety issue of the sprinklers and we have lost m o n e y because of their actions.”

Afzal Majid, who employs 10 people and has worked out of Swan Mill No 3 for the last 20 years, makes thermal underwear and needed to get promised deliveries out on time.

He said: “They came last Friday night and we came down when we heard. I spoke to someone who said we would be able to come to work as normal but then when we had all gone they said no-one could come in.”

Another business owner, Hiddayati Shah, has operated Prime Hosiery UK Ltd, employing 11 workers, for the last 10 years, and makes ladies underwear.

He said: “I have about 15 orders I need to get out.

This is our busiest time of the year and I want the place open so I can get my orders out.”

Adam Jarman owns Image Outerwear Ltd and employs four people importing and distributing wholesale and manufactured goods.

He said: “I have £100,000 worth of orders waiting to go but we can’t get inside.”

A spokesman for Allsops said: “The building has been sold but not yet completed. The receivers do not wish to comment.”

The administrators would not reveal who the new owner of the mill was as the deal is still commercially sensitive.