DIRECTORS at the Lurgan clothing manufacturers Kinnaird and Company are meeting potential investors and representatives of the IDB in an attempt to save the company and 125 jobs.

Kinnaird has a turnover of around £4 million, but three weeks ago "funding difficulties" forced management to lay off around 100 staff. Senior executives described the outlook for the company as "bleak".

"We are very concerned about the situation," said a spokesman. "Without new financing arrangements, I don't see where the future lies for the company. Unless we can come up with additional finance, there is no way out. As things stand, the company can't produce, and if we can't produce, we can't hold on to our order book."

He said the company's current order book was healthy, particularly in the American market, but that the cash shortage had now reached "crisis proportions".