STAFF AT Tile Market stores have been told that the company is to be placed in creditors' voluntary liquidation.
In a letter to staff yesterday, company director Jim McMullan said the move was necessary due to financial difficulties. The company was no longer in a position to continue with employment of staff and it was necessary to terminate contracts with immediate effect.
"Due to the company's financial difficulties, the company is unable to make payments to you relating to any monies that you may be entitled to due to the termination of your employment."
Mr McMullan told staff that they had received all outstanding wages in their final pay.
He said additional claims for holiday pay, redundancy pay and notice pay would be dealt with by the liquidator when appointed.
Mr McMullan said in the letter that the company would shortly convene a meeting of creditors at which a liquidator would be appointed.
The headquarters of Tile Market is based in Lurgan, Co Armagh, but it has more than a dozen outlets in the Republic.
Accounts for Lomac Tiles (Ireland) Ltd, which traded as Tile Market, show that it had a pre-tax profit of €258,671 in 2007, down from €523,930 in 2006.
The stores provide wall and floor tiles, solid wood and wood laminate flooring and tools and accessories.
It has been in operation for more than 30 years.
Staff said yesterday that some stores had been closed since just before Christmas.
The company could not be contacted yesterday.