LEWISTON – A federal magistrate Friday dissolved an attachment on the assets of bedspread maker Bates of Maine, a setback for a labor union seeking to recover damages for laid-off workers.

U.S. Magistrate David Cohen’s decision means that the owners are now free to move machinery, finished inventory and other assets from the Bates mill in Lewiston to Minnesota. The once-mighty textile giant is now ending its 151-year presence in Lewiston. The bedspread operation was the only portion of the business that remained in the city.

The union that represents the workers who lost their jobs in Maine is suing the company for failing to provide a 60-day notice to workers being laid off and failing to provide severance pay.

The Union of Needle Trades, Industrial and Textile Employees was granted the $431,000 attachment to cover potential damages in the lawsuit. Cohen’s ruling came two days after lawyers for the mill and the union presented arguments.

Jerry Crouter, who represents Bates, said the federal law’s 60-day prior notice provision exempts businesses that are making good-faith efforts to raise money in order to keep operating. He also said the severance pay provision under state law does not apply because the current ownership has been in place for less than three years.

Jon Beal, the union’s lawyer, said Bates should have told workers to expect to be laid off in November, when company officials realized they would be leaving Lewiston.

Beal expressed disappointment at Cohen’s ruling but indicated that his client may pursue an appeal.

“Our biggest worry, of course, is that while the attachment has been dissolved, the assets of the company will be taken out of the state,” he said.