Clothing firm to axe 300 jobs

A leading clothing firm is to close its two remaining factories in Co Londonderry with the loss of nearly 300 jobs.

Desmond & Sons announced on Wednesday that it is to close its factory at Newbuildings and cutting room at Springstown, with the loss of 277 and 16 jobs respectively.

In a statement, Desmonds management said it had "reluctantly" made the decision to end all manufacturing locally because of "competitive pressures".

"Pressures on margins, coupled with increased insurance, energy and social costs combine to pose immense challenges to Northern Ireland manufacturing," the statement said.

"Despite our efforts to maintain as much employment locally as possible, the inevitable result of all these pressures is that products cease to be viable when made in Northern Ireland and must be produced overseas.

"Our competitors have long since ceased to manufacture garments in the UK."

Expressing his regret at the news while on a trade visit to North America, Economy Minister, Ian Pearson said: "I am deeply disappointed that Desmond and Sons has been forced by increasingly difficult market conditions to make a further 293 employees redundant at two factories in Londonderry. This is another very depressing setback for the employees involved, their families and the economy of the North West.

"Invest NI and the Department of Employment and Learning are working closely with management to assist workers facing redundancy to explore alternative employment opportunities including self-employment."

In July the company, which supplies leading clothing retailer Marks & Spencer, shut the doors of its Irvingstown plant with the loss of 115 jobs.

This followed on from the closure of the firm's plants in Omagh and Swatragh.

(MB)