More than 140 jobs are to go in Banbridge, Co Down, following the decision by the footwear manufacturer Fii to close its factory in the town. In a statement, the company said that in the current economic climate, it was no longer possible to produce footwear competitively at its Northern Ireland plant. Consultations with unions are believed to be under way.

Fii makes Lotus ladies shoes and menswear brand Frank Wright as well as own-label footwear, mainly for high-street department stores.

Last month Fii's parent company in Northampton reported that it had cut pre-tax losses from £7.9 million (€12.5 million) to £690,000, with sales of its Lotus brand having improved during the year. But in other areas the company said it was facing growing competition from overseas manufacturers.

The director of economic development at Banbridge District Council, Mr Liam Hannaway, said the news had not come as a complete surprise.

"We've known for two or three years that there were problems," he said, "and there were fairly regular announcements of redundancies.

"But the factory has been part of the economic fabric of the area for around 50 years, and it's sad to see that it has come to this," he added.

The plant, formerly known as Down Shoes, was set up in Banbridge in the 1950s, and at one time employed more than 600 people. Mr Hannaway said the council would examine the site, with a view to attracting new industries to the area.