Rocca Tiles was closed yesterday amid fears that a liquidator would be appointed to one of the best-known home-improvement companies in the State. Managing director, Mr John Parnell, declined to comment on the closure of its nine outlets although the Rocca family, which owns about 20 per cent of company, said it was "shocked and saddened" at the development.

A banking source said the company had ceased trading and laid off its staff on Monday. Telephone calls made to five of the company's outlets yesterday morning were not answered.

Mr Parnell was a member of a consortium known as Linfen Ltd, which purchased the tile company from the Rocca family in 2000 for €4.76 million. The Rocca family is understood to have re-invested €762,000 in Linfen, a mark of their confidence in the company's new owners.

As the future of the company remained unclear yesterday, it emerged that the relationship between Linfen and the Rocca family has broken down. The Roccas said the company "may be put into liquidation in the near future".

Mr Parnell said: "There is litigation going on between the purchasers and the people who sold the company and I'm not allowed to comment. There's nothing I can say because it's sub judice."

When The Irish Times asked Mr Parnell on Monday whether the companies were in difficulty, he declined to comment. He would not answer any questions yesterday. His reluctance to comment was in contrast to stance adopted by the Rocca family, which established Rocca Tiles in 1976 and set up TileBusters in 1994.

From Italy originally, the Roccas developed one of the best-known family businesses in the State. A family member, the former model Ms Michelle Rocca, was once Miss Ireland.

In a statement issued through a public relations agency, the Roccas said family members had resigned directorships of Rocca Tiles and TileBusters on June 16th, 2000. They said a nominee of the family, Mr Martin Ferris of Ferris & Associates, was "forced" to resign from the Linfen board in last May "as a consequence of the directors' inability to furnish him with adequate financial information on the performance of Rocca Tiles and TileBusters since they were taken over".

A spokesman said the family had been shown no management accounts since 2000. In the statement, Mr Patrick Rocca jnr said: "We are very saddened at how such well-established businesses have ended up being closed after just 21 months under new management ."

The family had availed of the services of some of the best advisers in the State when selling the business, he said. "We have initiated legal proceedings on a number of grounds, including oppression of minority shareholders under Section 205 of the Companies Acts, against the directors of Linfen Ltd and their related interests."

Rocca Tiles and TileBusters recorded a loss of about £449,008 in 2000. The Rocca family spokesman said the companies were profitable prior to 2000.