Fruit of the Loom's Irish operations will not be affected by its filing for bankruptcy protection in the US, the company said last night. The US bankruptcy protection, or Chapter II, which the company filed for earlier this week, will not affect the legal status of the European holding company or its various subsidiaries.
Mr Joe Mullan, head of manufacturing of European operations, said it was business as usual at Fruit of the Loom Europe.
"We operate as an autonomous unit in Europe with our own manufacturing plants, IT systems and warehousing stock. Our 2000 plans show the European business to be profitable and our goal will be to successfully fulfil those plans.
"The Chapter II filing is a US issue involving the restructuring of Fruit of the Loom Inc finances in the US."
Chapter II protection in the US allows a company to continue operating to try to get it back together. The company has secured a $625 million (£480 million) facility from Bank of America to continue its day-to-day operations.
A company spokesman confirmed the redundancy packages of the 200 people due to leave at the end of January would not be affected by the move.
Fruit of the Loom still employs 1,000 people at its three plants in Buncrana, Templemore and Derry.
