Linen Supply of Ireland says around 200 of its workers are likely to be made redundant after the examiner appointed to the company recommended the closure of two of its Dublin plants.
The company, which employs more than 550 people, provides textile rental and laundry cleaning services to companies in the hospitality, healthcare and food industries. It also supplies hygiene equipment and dust control mats.
Linen Supply of Ireland applied for examinership last month, saying the hospitality and retail sectors had been badly hit by the current recession, leading to a substantial decline in demand for the company's textile services.
As part of his plan to restructure the company, examiner Kieran Wallace of KPMG has proposed the closure of the company's plants at Fonthill and Naas Road.
HR head Tara Devitt said it was 'a sad day for the company and the employees affected.'
'It is clear painful decisions will have to be taken if the ultimate goal of keeping the business going and saving up to 300 other jobs is to be achieved.'
The company says it believes its Micronclean plant in Spiddal is viable and should be established as a separate entity and the examiner is to recommend this course of action to the Court for approval. The plant employs 69 people.
