But bosses at coach builder Optare, which aims to move from its Cross Gates site , say it will be business as usual.

The firm has been bought for an undisclosed sum by Jamesstan Investments Ltd, controlled by successful North East entrepreneur Roy Stanley.

Optare, which employs 300 people at Cross Gates, began life as Charles Roe coach builders in the 1920s.

In the 1960s it became part of state-owned British Leyland which shut the factory in the 1980s with the loss of 400 jobs. Workers and directors bought the firm with their redundancy money, backed by West Yorkshire County Council, and launched Optare.

It was taken over by North American Bus Industries Inc but again became independent through a management buyout in July, 2005.
Optare management said production would continue as normal.

Russell Richardson, who led the original buyout from British Leyland and is chairman of Optare Holdings, will join the board of Jamesstan Investments as a non- executive director.

He said: "This agreement means 'business as usual' for all of Optare stakeholders."

Optare plans to move to a new location in West Yorkshire. Leeds City Council rejected a planning application for 285 homes at the Cross Gates site.

The firm has appealed and a public inquiry begins next week. Optare has also submitted a second application for development of 256 houses. Optare also has a manufacturing plant in Rotherham.