Chronicle of slow, painful decline

1930s: The McCarters establish a ladies' underwear manufacturing plant in Buncrana.

1985: Chicago-based clothing manufacturer, Fruit of the Loom, becomes a publicly-quoted company. Farley Inc, controlled by Mr Bill Farley, acquires 22 per cent of the company.

1986: Mr Andrew McCarter is introduced to Fruit of the Loom executives.

1987: Following the signing of a partnership deal with the McCarters, Fruit of the Loom invests £18.5 million in Donegal. Workforce in Donegal and Derry grows in following years to 3,500.

1995: Short-time working is introduced intermittently.

August, 1997: Redundancy notices for three directors, Mr Willie McCarter, Mr John McCarter and Mr Seamus McEleney, are issued. Mr Andrew McCarter takes over European manufacturing operations.

August 1998: Mr Andrew McCarter announces he is to leave the group in October.

September: 700 workers out of a workforce of fewer than 2,500

go on short-time working. Dispute arises over the amount of money to be repaid to the IDA.

December 7th: The company announces it is planning to temporarily lay off the majority of its workforce in Donegal and Derry from today, a week earlier than the scheduled Christmas production shutdown, until January 5th.

December 9th: Fruit of the Loom confirms the transfer of its T-shirt sewing operations to Morocco from next year with the loss of 770 jobs. It commits itself to retaining 700 more sewing jobs throughout next year and to ensuring the security of the remaining 600 jobs at its fabric production facilities until at least 2006. It will repay £5 million in State aid by the end of January and three factories at Malin Head, Milford and Raphoe will be sold in lieu of a further £2 million payment.