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.
One hundred workers now have job security after a buyer was found for Axminster Carpets over the weekend.
The company charged with re-structuring the carpet firm is making 300 staff redundant.
Three-quarters of the workforce at Devon-based historic carpets firm Axminster have been made redundant