A total of 119 jobs are to go in Limerick-based company Fitzpatrick Packaging and its Mayo subsidiary Fitz-Pack cartons.
Staff were told of the cuts yesterday evening and a liquidator is to be appointed this afternoon, according to reports on RTE Newsthis morning
Management claim a fire at a nearby electrical substation disrupted the company's manufacturing process for a period of three months.
The company also said difficulties in reaching settlement with insurers meant the company had to seek the protection of the court as the financial losses due to the fire could not be maintained.