WATERVILLE – A potential buyer has signed a letter of intent to buy the Hathaway shirt company, the firm announced Wednesday.

Donald J. Sappington, chief executive officer of C.F. Hathaway and Co., said the sale will be completed once a few details are resolved. He would not name the buyer, but said Hathaway’s 375 employees have been informed the company is for sale.

“Our main interest is to find someone who will continue the operations,” Sappington said.

Hathaway has sewn shirts at its historic Waterville factory for more than 160 years. It once set the standard for dress shirts and its logo of a man with an eye patch became recognized around the world.

The company nearly shut down five years ago but remained open after an investment group led by former Maine Gov. John R. McKernan Jr. bought it from the Warnaco Group.

The recent downturn in the economy again left Hathaway strapped for cash. At one point, Hathaway’s owners considered filing for bankruptcy, Sappington said.

“The workers know we’ve been struggling to buy material, and they have been working short shifts,” he said.

Sappington said officials of Local 486 of UNITE – the Union of Needletrades, Industrial and Textile Workers – have been informed of the negotiations and are backing the sale. Union officials could not be reached for comment.

Waterville Mayor Nelson Madore said company officials told him about the negotiations, but have not sought any financial or other assistance from the city.

“They hope that the new buyer will continue in Waterville and make it grow,” said Madore. “That’s what they’re saying, and hopefully that will be the case.”

Hathaway shirts are sold at about 1,800 stores nationwide.

Major customers include high-end retailers like Dillards and The Bon-Ton Stores. Hathaway also makes the Puritan line of shirts carried by Wal-Mart, and recently began making dress shirts for the U.S. Navy and Coast Guard.