One hundred and twenty people lost their jobs yesterday when Wexford Weaving went into voluntary liquidation. The union representing the majority of the employees has strongly criticised Enterprise Ireland for failing to rescue the firm.

SIPTU official Mr Michael Wall said the union believed the jobs could have been saved but that the State was not prepared to provide the investment sought, despite the evidence contained in a PricewaterhouseCoopers report completed three weeks ago which indicated that the company was viable.

"Requests for assistance were made and they were turned down," he said.

However, Mr Gerry Strange, managing director of Wexford Weaving, formerly Schoepp Velours - owned by distribution company DNL Holdings of North Carolina - said while Enterprise Ireland was aware of the firm's difficulties, the closure was not the agency's fault.

DNL Holdings acquired the firm in April, 2000 with the expectation of expanding into the US market but the US recession put paid to the plan, according to Mr Strange yesterday.

"I am very sorry for the workers who have been very supportive of me in the last year-and-a-half and of the company over the past 22 years."

The employees, who have been laid off three times for short periods since Christmas, reacted with anger and shock to the closure and the news that they will receive only basic statutory redundancy, equivalent to a half week's wages per year.

The Wexford Weaving closure follows the announcement three weeks ago that the Wexal aluminium plant in Enniscorthy is to close in July with the loss of 150 jobs, and the loss of a total of 35 jobs last week at ABS Pumps, Theo Benning and Wexford Electronix in Wexford town.

President of the Wexford Chamber of Industry and Commerce Mr David Sinnott said he was disappointed but not surprised at the latest closure.