MORE than 50 Ballarat workers will be out of jobs by Christmas after CMI failed to find a buyer for its Ballarat factory.
The sale of the factory fell through yesterday, with no prospect of a buyer in the future.
The Australian Manufacturing Workers Union and receivers McGrath-Nicol both confirmed the factory would be shut down.
It will leave 51 employees of the car-parts manufacturer out of work.
AMWU assistant state secretary Leigh Diem said he had suspected the sale was going to fall through for some time, with the receivers reportedly hoping to sell the factory to an Indian company.
"We're not sure exactly why the process has fallen through," he said.
"I think that unfortunately there is no prospect of it being sold. There doesn't seem to be any future prospects of a buyer."
Unions and receivers will now work to ensure employees receive full entitlements under the government's GEERS scheme and that they receive their redundancy payouts in full.
A written statement my McGrath-Nicol said operations would continue until November 30.
"The receivers and managers will work with employees, customers, suppliers, and other stakeholders to ensure that wind down plans are implemented as smoothly as possible," it read.
"Receivers and managers had exhausted all options for the sale of the Ballarat business and that it was disappointing for all concerned that a sale could not be achieved."
CMI makes seatbelt restraints, airbags, brake pad backing plates, suspension components and door and boot hinge parts.
Creditors placed the company into liquidation in May after crippling debt forced managers' hands.
CMI's debt reaches up to $40 million and includes $1.7 million in unfunded superannuation - payments the union says are unlikely to be made back to workers.
More than 100 CMI jobs had already been lost in Melbourne when the company's Cambellfield and West Footscray factories were closed down.