The High Court has appointed a provisional liquidator to Co Limerick poultry firm Castlemahon Foods Products, which employs 300 people.
The court was told this morning that the Newcastle West company has debts of almost €15 million and lost €5.7 million in the year to April last with accumulative losses over the past five years of €19.27 million.
The company, which employs some 300 people, was unable to implement a restructuring plan to save the business, according to Mr Declan McGrath, counsel for the company.
Labour Limerick East TD, Jan O'Sullivan
Company director Michael Donoghue gave evidence that the company's wage rates were significantly higher than market rates and contributed to a lack of competitiveness on the part of the company.
A hearing will be held on October 23rd for the winding up of the company.
Labour Party TD for Limerick East, Jan O'Sullivan, said the job losses would affect the entire county but expressed particular concern for the local community.
Ms O'Sullivan said: "[Castlemahon Foods] has served the entire county in that time and its closure will have a significant impact on families who have had fathers and sons, and mothers and daughters, employed at the plant."
Fine Gael senator Michael Finucane said Castlemahon had been a "flagship industry in the area for years". "It is also a huge blow for poultry producers in the area," he added.