A provisional liquidator has been appointed to the bottled mineral water company Kerry Spring Water, after the High Court was told it was insolvent.

A decision by Dunnes Stores to stop ordering product from Kerry Spring Water for its stores had "a devastating effect" on the company, which has more than 35 employees.

Kerry Spring has a manufacturing facility at Ballyferriter, Dingle, Co Kerry and most of its employees are based there.

Solicitor Gavin Simons told the court the decison by Dunnes Stores was one of the contributing factors to losses at the company. The company had in the past also been involved in ongoing litigation with another company, he said.

Mr Simons said the Dunnes Stores decision related to a common problem with bottled water of an off-water odour. There were eight complaints of off-water odour but there was no health and safety issue.

The company believed Dunnes’ action in discontinuing its orders appeared totally disproportionate. It had “a devastating effect on the company”, the solicitor said.

As of May 2015, the company had a deficit of €1.1 million and was clearly insolvent, he added. He asked that a provisional liquidator Myles Kirby be appointed.

Mr Justice Paul Gilligan made an order appointing Myles Kirby provisionl liquidator and returned the matter to August 24th.