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News imageWednesday, September 22, 1999 Published at 18:30 GMT 19:30 UK
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UK: Northern Ireland
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Clothing firm making 130 redundant
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Staff are being made redundant as a clothing company cuts costs
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A Northern Ireland clothing company has announced it is making around 130 workers redundant and closing one of its factories.

Desmonds, which manufactures garments for high street retailer Marks and Spencer, is closing its smallest factory in Magherafelt, County Londonderry.

After a process of re-deployment, 94 people will lose their jobs at this outlet.

The remaining 36 redundancies will be split between the company's plants at Springtown and Dungiven in County Londonderry and Omagh, County Tyrone.

No longer economically viable

Desmonds took over the Magherafelt plant in 1993 but says that it has not been possible to maintain it as an economically viable unit.

The company says the job losses follow a review of its outerwear business, which makes items such as trousers.

It makes clothes solely for Marks and Spencer which has had well publicised problems recently.

However, it is understood these job losses are not so much the result of falling orders, but what the company sees as a need to keep cutting costs in an effort to stay competitive.

In recent years the company has incurred significant operating losses.


[ image: Felix McCrossan:
Felix McCrossan: "Industry is slowly bleeding away"
One trade union official says it is a devastating blow.

Felix McCrossan of the General Municipal and Boilermakers Union said: "This industry is slowly but surely bleeding away and no-body seems to care about it.

"The government in particular doesn't seem to be interested in it. Something has to be done. They need to take a hard look at this industry.

"They are either letting it go and they want to let the people know that they are letting it go, or they need to get in and do something about it."

Desmonds says it hopes to work closely with the Industrial Development Board and Magherafelt District Council to try and ensure the site is developed for industrial or community use.

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