Last month, parent company IAWS announced that 124 of the bakery's 189 workers were to lose their jobs, when it closed the frozen arm of the business.
"There have been a number of serious declarations of interest," a spokesperson for Gallaghers told British Baker. Forty jobs could be saved if the fresh business and its assets are acquired by a new owner. "Everybody is working very hard to try and make it happen," added the spokesperson.
Údarás na Gaeltachta, a local government development agency, is involved in the negotiations. Last year Údarás offered an investment of 780,000 (£662,340) to Gallaghers but it was not taken up. However, that financial package still remains available to the company, according to senator Brian Ó Domhnaill.
The production of frozen products alongside a further 25 jobs look set to move to Cuisine De France's state-of-the-art Grange Castle facility in Dublin over the next few months.