Desmonds shed over 300 jobs

A leading clothing manufacturer announced today it was shedding more than 300 jobs and moving the work abroad.

Desmond and Sons, which currently employs more than 1,800 people in Northern Ireland, and is a sole supplier to Marks & Spencer, said it was pressure on price not a drop in orders which was responsible for the job losses.

The cuts will see the closure of a factory in Dungiven, Co Derry, with the loss of 133 staff, and the ending of garment production at its plant at Springtown, Derry, affecting 170 workers.

A cloth-cutting operation to support another of its factories will be retained at Springtown, employing 17 people.

The company said the decision was taken with regret, but it had no alternative other than to restructure the business in order to match production capacity to market conditions.

The cutbacks , it said, were largely the result of continuing pressures on margins which meant production at the two factories was no longer viable.

Desmonds said: “Retailers have to respond to consumer preferences in order to maintain and grow market share and that has meant offering the right products at a price the consumer is prepared to pay.”

Over the past decade Desmonds has gradually been moving its production abroad to take advantage of lower employment costs, and more than 60% of its total production is overseas.

It has joint venture operations in Turkey, Sri Lanka and Bangladesh, employing some 3,000 workers, and provides work to a further 2,000 through contracted-out work on the sub-continent.

Last September the company closed a factory in Dungannon, Co Tyrone with the loss of 106 jobs.

Today’s announcement came after a detailed review of its operations. Desmonds will still retain factories in Derry, Swatragh, Irvinestown and Strabane, employing about 1,500 people.