DERRY shirt-maker Smyth & Gibson is to temporarily lay off 50 staff, having lost a major contract with a key customer.
The company, one of the last remaining traditional handmade shirt-makers in Britain and Ireland, has told its workers not to turn up for work from next Monday until May 14.
Management has also told those affected that they will be paid £27 per day for the first week of their lay-off and nothing thereafter, and it advised them to contact their local jobs and benefits office
"We accept this is a very difficult time for everyone and I would personally like to thank youfor your understanding in the current circumstances we find ourselves in," management said in a letter to workers.
Last year Smyth & Gibson Shirtmakers secured a £500,000 loan from the Growth Loan Fund to support its global expansion and create four new jobs.
The company manufactures top quality garments for leading high street brands such as Selfridges and House of Fraser.
Its products are currently exported to Canada, Germany, Belgium, Ireland and the Netherlands, with 54 staff employed in the company’s Derry factory.
Speaking at that time, managing director Richard Gibson said: “Over the past 12 months we have grown the business steadily, breaking in to new markets and building our online presence.
“This investment, combined with the continuing support from Invest NI and our equity partners, will allow us to implement our future growth strategy, which will be concentrated on further developing our existing export markets of Canada and Germany, as well as supporting growth in our direct retail channels.”
“The recent development of a web concession with House of Fraser, is an example of the growth plan that will help deliver improved margins and more direct contact with the end consumer.”
Foyle DUP MLA Gary Middleton has voiced his concerns at the decision by Smyth & Gibson.
"This has obviously caused much concern among the staff and fears for their future employment," he said.
"I have already made contact with the company who are working to resolve the situation. I will continue to work with those affected and to provide advice and guidance where appropriate.”
