Keating's Bakery in Kanturk, Co Cork, is to cease production, with the loss of 76 full-time jobs. Twenty part-time administrative employees will also be made redundant because of the closure in the coming weeks.

A statement from Irish Pride Bakeries, with which Keating's merged in 1997, said the decision to close the bakery was taken with great regret.

Irish Pride is owned by One51, which used to be IAWS Co-operative and was the original shareholder in the quoted food group IAWS plc. One51 is led by businessman Philip Lynch and its other investments include 26 per cent of National Toll Roads. ...

"Unfortunately, the Kanturk bakery is loss-making and is no longer a viable production unit. Its position has been under review for some time and unfortunately we have now arrived at this decision.

"The industry has changed radically in recent years in response to more competitive market conditions.

"There has been considerable rationalisation in the sector and this is likely to continue," the company said in a statement.

"The decision to close is no reflection on the workforce but rather is a recognition of the commercial realities of operating within the bread market at present," the statement adds.

Mainline production items from Keating's will be transferred to Irish Pride's other plants in Taghmon, Co Wexford and Ballinrobe, Co Mayo and distribution to all existing markets will continue.

Irish Pride said that it will provide out-placement and re-employment services for the staff at HM Keating and would do everything possible to find alternative positions for those affected.

The company will begin consultations with staff representatives immediately.