TEXTILES group Dewhirst is to shut its Sunderland factory with the loss of nearly 400 jobs.
The end of the Leechmere factory will also affect another 45 support jobs in the Ashington factory as Dewhirst switches production to Morocco.
A company spokesman said: "This proposed closure is the direct result of continued consumer pressure on prices. This, in turn, has led to insufficient profitable business being made available to maintain our UK manufacturing operations at their current levels. We are looking to transfer some production to other sites, including those overseas."
A 90-day statutory consultation period with the union and the Sunderland employees had begun. "Where practical, every effort will be made to offer alternative employment at other sites within the group," he said.
The GMB condemned the proposed closure, blaming the company's search for cheaper production overseas, to satisfy the needs for cheaper goods from major customers such as Marks and Spencer.
The job losses bring the total to more than 4,000 in the clothing sector in three years, including 700 in Dewhirst's three operations in Peterlee, which closed in March, 2000.
Val Scott, regional organiser for the GMB, said: "Our members have worked extremely hard to be competitive. However, the company has not matched this commitment and is pursuing a cheap labour option in Morocco.
"Dewhirst is blaming Marks and Spencer, and they share the blame, but this company has failed to win other customers. They are letting these workers down badly and are failing the people of the North-East."
She said: "We will be working with the Employment Service and other agencies to make sure as many of these workers are retained in employment as possible."
GMB regional secretary Kevin Curran said Dewhirsts and companies like it were pursuing the easier option of relocating outside the EU.
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