T-shirt and casualwear maker Russell Athletic has agreed to open a new apparel factory in the Choloma area of Honduras following university boycotts in the US and UK.

The decision comes after students and workers' rights groups led protests at the firm's decision to close the Jeerzes de Honduras factory last January, which led to 1,200 workers losing their jobs.

The campaigners alleged the closure was part of attempts to bust the Sitrajeeresh union.

Russell/Fruit of the Loom now says it will re-hire all of the former JDH workers in its Honduran factories over the next year, and will pay "substantial economic assistance" to them.

It has also pledged to conduct worker rights and freedom of association training in its factories and signed neutrality agreements to allow worker organising at all of Fruit of the Loom's other Honduran facilities.

Russell Athletic is a unit of Fruit of the Loom, the largest private sector employer in Honduras owning eight factories and employing over 10,000 workers.