SLOW but steady progress is being made in the deal to save troubled company Poole Pottery.

Two months after the company was given four months to find a buyer, it is believed that a preferred bidder has been selected and granted a period of exclusivity.

But all discussions are at an early stage and it is too soon to know how any deal will affect the 88 people employed by the company.

A spokesperson for the administration group said there had been a lot of interest in the company.

She said: "A lot of people were seriously interested. Since then the time has been spent meeting people and introducing them to people at the pottery."

If a new buyer cannot be found within the next couple of months, Poole Pottery faces being broken up and its assets sold off.

The company asked to be handed over to an administration group just one day before it faced a winding-up petition. Outstanding debts of around £140,000 were mentioned during a hearing at London's High Court.

Meanwhile, the troubles have not affected the separate Poole Pottery factory shop, which has seen its sales increase by four per cent year on year.