Northern Ireland suffered another jobs setback yesterday when Coats Viyella announced that it was halting production at its shirt factory in Derry with a loss of nearly 400 jobs - the latest victims of the Marks & Spencer downturn.

However, a plan put together by senior managers at the Glenaden plant could save the jobs of 140 of the 382 workers.

The company said a reduction in M&S orders for shirts and ties meant it could no longer make the products economically in Britain.

Mr Max Playfer, divisional personnel director, paid tribute to the senior management team and workers. "It is extremely regrettable that market realities have forced us to cease M&S production on the site," he said.

Mr Playfer said the problem was not limited to plants in Northern Ireland.