Axminster Carpets workers have been paid this morning for the first time in two weeks.
The company entered administration yesterday and announced it was making 300 staff redundant. Those workers will have to apply to the government for redundancy money.
Administrators will keep just 100 staff after deciding to downscale the company's carpet manufacturing operations at Axminster and Buckfast. It will also end yarn production but two factory outlet stores will remain open.
The company, which dates back 250 years, blamed a sharp increase in raw material prices and the UK's continuing economic difficulties for the decision to go into administration.
It is one of Devon's biggest employers and its plight prompted more than 6,000 people to sign a petition calling for it to be saved.