Workers in Donaghadee gather outside after hearing the news

A receiver was appointed on Wednesday to Carpets International, a Bradford-based firm with plants in Donaghadee and Killinchy.

It currently employs about 1,200 people in the UK - 290 work in Donaghadee in its carpet manufacturing operation, while another 140 are involved in spinning yarn in Killinchy.

Britain's largest carpet manufacturer, Carpets International trades under the Kosset, Wilton Royal and Abingdon brands.

It is understood hundreds of jobs across Northern England, Wales and Scotland are also at risk.

Fears for the future of the company's Northern Ireland plants were voiced in 2001 when the company complained of severe competitive pressures.

It's a very difficult market situation in which to sell a business in textiles and carpet manufacturing Garth Calow Joint receiver

At that time, jobs were lost at plants in England instead, but the company has continued to face difficulties.

Joint receiver Garth Calow from PricewaterhouseCoopers said the company had a recent history of trading losses and "a heavy burden of debt".

"Employees have been advised that there are no redundancies today and over the next couple of days, we have to establish the position within the UK," he said.

"By the start of next week, we will be in a better position to understand the short-term numbers we will have to work with."

He said they would be seeking to sell the business as a going concern.

"It's a very difficult market situation in which to sell a business in textiles and carpet manufacturing," he said.

We did not believe a carpet company of this size would go into insolvency Alison Gribben Union representative

"However, we will be using our best endeavours - we will be advertising the business for sale and seeking to extract any interest that may exist locally and indeed further afield."

Alison Gribben of the TGWU said workers were shocked by the announcement.

"We did not believe a carpet company of this size would go into insolvency," she said.

"I think the workers have been treated horribly.

"They had short-term working prior to the July shut-down, they've come back and been guaranteed a working week with overtime, and it has been business as usual as far as they were concerned.

"To be suddenly be told they may not have a job and that the receivers have been brought in, it has brought a lot of uncertainty into the factory."

Carpets International acquired the Killinchy operation from Northern Ireland Spinners in 1999.

It originally purchased the Donaghadee factory under the CV Carpets acquisition by Shaw Industries in 1985.