Declan Gallagher, who father Frank founded the bread-maker in 1968, bought back the company from IAWS yesterday after selling it in 2007.
Mr Gallagher’s rescue package comes just weeks after IAWS said it was pulling out of Ardara with the loss of 189 jobs.
Last night Mr.Gallagher told donegaldaily.com that he hopes to have 70 jobs up and running in the fresh bread production end of the business shortly with another 30 to follow.
He also revealed the company has plans to diversify into new product ranges.
“It has been a tough four days but we are delighted that the business is now back under our full control.
“We have a great product and we have a terrific workforce and now we must make it work.
“People still eat bread during a recession but we must ensure that we move with the times and introduce some new products,” he said.
At present only half of the 50,000 sq foot factory in Ardara is being used.
But the expansion of the company into different ranges could see the rest of the plant utilised.
Mr Gallagher, who refused to divulge how much he paid for the company, asked Donegal retailers to get behind the company and companies like it and to spend money locally in shops, garages, restaurants and other stores.
“We have got to think about our future and protect as many manufacturing companies as we can in our region for our children’s sake,” he said.
And he added “I would like to express my appreciation to IAWS for following through on their stated determination to see the Fresh bread business preserved. They have been part of very positive negotiations on the sale and likewise Údarás na Gaeltachta have been very supportive of the effort being made.”
Stephen McCahill, chairman of the Ardara Traders Association, said nobody could have pulled off what Declan Gallagher has done.
“It is a credit to him because Gallaghers is simply in his blood. Nobody else but Declan could have done it.
“He now deserves all our support and he will get it,” he said.