An announcement on the future of Axminister Carpets is expected to be made later this afternoon. Union officials are currently on their way to the factory.
More than 300 jobs could be lost, as part of a deal aimed at saving the firm.
A food bank to help workers who have not been paid by Axminster Carpets opens today.
It will be set up in the town's Tesco store. It will collect non-perishable items for the next week.
250 workers are waiting to be paid as the company tries to put together a rescue plan.
20 jobs have been saved in Devon after the sale of a tannery which belonged to Axminster carpets. Axminster have given notice of intention to go into administration.
Devonia sheepskin tannery in Buckfastleigh has been bought by Eastern Counties Leather.
The group 'Save Our Parkland' has dropped its legal fight to block house building on land owned by Axminster Carpets. The company has filed for administration and says selling the land at Cloakham is 'pivotal' to its recovery.
Families, friends and supporters turned out to join workers from Axminster Carpets for a demonstration in the town today.
They wanted to show the strength of support to keep the factory open.
They're hoping a buyer can be found for the firm, which employs 250 people locally, and a further 150 at Buckfastleigh.
John Andrews reports:
Workers at Axminster Carpets are out on the streets today as part of their fight to save more than 400 jobs.
On Wednesday the firm, the Devon-based firm, which dates back more than 250 years, applied to go into administration.
Staff will be outside the Guildhall in Axminster from 10.30 this morning (Saturday) and are asking people to sign a petition calling on the Government to do more to support their industry and keep the factory open.
There's dismay in the Devon town of Buckfastleigh as Axminster Carpets fights to find a new owner. With administrators waiting to take over, there's huge uncertainty over the 132 jobs there and the hundreds more in Axminster.
400 jobs are at risk at Devon-based Axminister Carpets as it prepares to go into administration. Staff were told they were likely to lose their jobs unless a rescue bid can be achieved. Business leaders have described the news as an 'earthquake' for the area.
Efforts to save Axminster carpets are continuing today after the Devon-based firm announced they may have to call in the administrators because of financial troubles.
400 members of staff were told they were likely to lose their jobs unless a rescue bid can be achieved. The company has been making carpets for more than 250 years and blames difficult trading conditions.