Up to 200 jobs were today under threat which could signal the end of what was once one of biggest clothing companies in Northern Ireland.
Union representatives at Desmonds claim the firm's warehouse at Drumahoe outside Derry might close. Shop steward Mr Andy Stevenson said: "We fear the worst."
At one time the company, which supplies exclusively to Marks and Spencer, employed 3,500 workers at 10 factories.
But all manufacturing has been transferred over the last five years to Sri Lanka, Bangladesh and Turkey. Desmonds HQ is also based at Drumahoe where another 50 staff work.
With M&S reviewing its supply chain, union representatives claim they expect to be called to a meeting with management before the end of the week.
A company spokesman said: "We do not comment on rumours." But Mr Stevenson said: "All the signs and signals are the same as previous times when job losses were announced."
PA