BBC News Online: UK: Wales

M&S slump threatens more jobs

Dewhirst produces clothes almost exclusively for the high street chain and has been badly hit by its recent poor performance.

Clothes sales at M&S stores have fallen by more than 9% and the company has admitted that its ranges are "not good enough".

Christmas sales saw the retailer's share price drop again, putting further pressure on suppliers.

Dewhirst's factory at Lampeter, which employs 165 workers, is already due to close as a result of the problems.

But there are now mounting fears for the jobs of 300 people at the company's Fishguard factory. The site is already under review.

Dewhirst executives and Pembrokeshire politicians are meeting with Welsh Assembly First Minister Rhodri Morgan in Cardiff on Wednesday to discuss the factory's future.

The Lampeter plant is due to close in April and Dewhirst said that it hoped to offer most employees jobs in Swansea and Cardigan.

Marks & Spencer's announcement last year that it was to buy textiles from abroad sent shockwaves through the industry, hitting suppliers in Wales, including Bairdwear.

After announcing the last round of cuts, Dewhirst said its first concern was for the employees.

Ceredigion Assembly Member Elin Jones said the closure was a massive blow to the economy of the area.

She said she intended to meet the Welsh Development Agency to discuss their plans for the site at Lampeter.

Twelve months ago, Dewhirst closed two factories in England with the loss of 1,000 jobs.