Derry shirtmaking firm announces job cutbacks

There was a blow for Derry today when a leading shirtmaker announced it was shedding nearly 100 jobs.

Glenaden Shirts, who make leading name ’up market’ shirts, said it was cutting its workforce by 85 to around 30.

It was the latest in a long line of companies in the North who have been unable to compete with the low costs of the Far East.

Indicating it too was shifting production abroad it blamed “reduced demand for product sourced from the UK.”

Trade unions said it was a devastating blow to the workforce and a loss of many more jobs than had been expected.

Glenaden makes shirts for leading names such as Thomas Pink, Burberry and Aquascutum, as well as its own brands.

It said in a brief statement: “The company regrets that this reorganisation has to take place in response to changing market circumstances but remains totally committed to its ongoing operations in the North West, where it will continue to provide a high quality bespoke production service to customers, employing around 30 people.”

It said vitally important activities relating to design, product innovation, brand management, marketing, customer service and distribution would continue to be controlled from the headquarters in the Waterside area of Derry.

The factory was acquired from Coats Viyella in 2000 and since then the company has developed two of its own brands and last year acquired a third. The shirts are sold in the UK and USA.

Ironically the job losses were announced as the company said 2007 had been the most successful in its history, with sales increasing by 30% to £4.4m (€5.8m).

Gareth Scott, from the Unite union, said: “This is a devastating blow.

“The staff were possibly expecting an announcement for a smaller number of redundancies, but this is a major announcement with major redundancies.”