Jobs which were under threat after a Ryedale pig firm went into administrative receivership have been saved.

Newsham Hybrid Pigs Ltd, of Malton, has been bought out by two Yorkshire meat firms saving the majority of the jobs which were under threat.

The purchasers are JSR Farms Ltd, of Driffield and Wild Pork Ltd, a company owned by Newsham's founder Ian Brisby.

Receiver Keith Hinds said the two firms would work closely together.

He added: "I am delighted to have secured a sale of both businesses; the customers and employees have been particularly supportive through a difficult time."

Tim Rymer, from JSR Farms, said a few job losses might be expected but the future of most of the jobs at the plant were now secure.

"This opportunity to bring together the breeding expertise of Newsham and JSR allows us to improve our products by using the best of both companies.

"Consequently we will deliver better value to our customers."

Receivers RSM Rhodes, of Leeds, were called in in September when it was announced the firm, which employs more than 50 people, had gone into administrative receivership.

It was reported that the firm started struggling financially when pigs from Newsham were found to have contracted a disease connected to swine dysentery.

There followed a period of uncertainty as RSM Rhodes attempted to find a buyer.

But yesterday's announcement that Newsham and its assets, and its Scottish subsidiary Newsham EmboCORR Ltd had been sold to two meat firms is likely to secure the majority of the jobs.

Meanwhile, despite this week's announcement of a six monthly loss of £5.4m at Malton Foods, morale at Malton Bacon Factory, is "sound", a worker said.

The news increased speculation that the factory could close or be sold.

The worker said: "There seems to be no problem here and morale is sound. I've heard the factory might be sold, not closed, but another worker said that. We don't get told much though. We just work hard and get paid at the end of the week."

After the announcement, local politicians expressed their concern about the factory's uncertain future.

District Council Chairman David Cussons said: "It would be a disaster if the Malton factory was to close or shed jobs. It has a long tradition of employing a high number of people in the district."