A family-run business that has been hand-making clothes in Bungay since 1846 and was responsible for creating Del Boy Trotter's famous sheepskin coat, is facing closure.

For five generations Nursey of Bungay has been making leather and sheepskin clothes, but Tim Nursey, the current managing director, today confirmed that if a buyer is not found to take over the business, they will be forced to close next month.

Mr Nursey, who had the business handed down to him by his father in the 1970s, said: 'We are in talks with a company to take over parts of the business. It is possible that there might be another firm as well that could be interested.

'As the situation stands at the moment we are due to cease manufacturing on March 19 unless something crops up.

'We will then reopen our shop in October for four months to sell of our stock.'

Mr Nursey, who said they have made thousands of sheepskin coats in the last 50 years, said it was a difficult decision to make and that the business is currently in limbo.

He added: 'We haven't made a profit for a number of years, costs are going up every year and it has been another mild winter.'

The company uses the highest quality Toscana and Merino lambskin as well as Italian leather, which is turned into coats, slippers, gilets, gloves, hats and many other products by the workshop's team of expert seamstresses and cutters - many who have been with the company for more than 25 years.

Their coats has attracted celebrity buyers such as television presenter Holly Willoughby and musician Eric Clapton - who sketched the design on the back of an envelope. Probably the most famous coat ever made by Nursey belonged to David Jason. The Only Fools and Horses star was renowned for his sheepskin coat, and loved it so much that Nursey made one for the show and one for his private use at that time.

Nursey of Bungay, based in Upper Olland Street, was acknowledged for its commitment to handmade production in 2011 when it was awarded the 2010 Countryside Alliance Award at the House of Lords for Britain's best traditional business.