A review of operations at Northern Ireland clothing maker Desmonds has prompted fears that the firm is about to announce a series of cutbacks.

The firm, which makes clothing for Marks & Spencer and employs almost 2,000 people, closed its factory in Dungannon last September with the loss of 106 jobs. It has two plants in Londonderry and a warehouse and headquarters in Drumahoe and a further 2,750 workers at factories in the Middle East and Far East.

A spokesman for Desmonds said: "A review of production is underway in the light of the need for us to remain competitive. But we have no announcement to make at present."

Employees are expected to learn the fate of their jobs by the end of this week.