Sunday Tribune employees have been formally told they are being made redundant by the receiver because no firm offers have been made for the business.
The company went into receivership on February 1 after 29.9% shareholder Independent News and Media said it would no longer fund the business.
Staff received letters today from receiver McStay Luby telling them they were being made redundant on February 28 and would receive a pay cheque up until this date. It is understood they are receiving only statutory redundancy.
In the letter, McStay Luby said there had been a small number of enquiries about buying the business, but no definite offers had been received. Jim Luby said he had no option but to make all employees redundant. The Sunday Tribune employed 43 people.
70 jobs could be saved in Donegal deal
The former owner of Gallagher's Bakery in Ardara has bought back a section of the business from the company he sold it to, saying the move has the potential to save up to 70 jobs at the Donegal bakery.
Last month the Swiss company which now owns Gallagher's said 124 jobs would be lost through its decision to close the frozen food section of its operation, which the company believed was unsustainable in the long term.
The company hoped that 40 jobs could be saved if a buyer could be found for its fresh food section. Today Declan Gallagher, who sold the company to IAWS in 2007, said that he had bought back the fresh food section of the business after intensive negotiations.
Mr Gallagher, managing director of Gallagher's Bakery, said he was delighted that the fresh bread business had been saved, as it was an important local business in the area.
'It is my intention to grow this business and increase employment to our much needed manufacturing sector in Donegal and indeed in the north-west region,' said Mr Gallagher.
