The Authentic Food Company in Dundalk is to close, with the loss of up to 180 jobs.
Joint provisional liquidators have been appointed to TAFC Manufacturing Ireland, with an orderly winding down of the business planned.
Staff at the plant today received a letter from the liquidators informing them that the company was insolvent and was not able to continue paying wages.
They said they would engage with trade union representatives in relation to any applicable redundancy scheme.
In a statement today the company’s managing director, Nik Basran, confirmed the closure, which he said was a result of the plant's unprofitability.
"We have faced some serious business challenges in recent months that have been specific to this site," he said.
"While we have worked tirelessly to meet those challenges head on and carried out a comprehensive review of the business to try to find a way to make it profitable over the long term, unfortunately, that has not been possible. We have therefore had no option other than to close the Dundalk facility."
The facility, which was formerly operated by Heinz but was acquired by The Authentic Food Company in 2015.
Concerns had been growing in recent weeks over the future of the operation and earlier this week the British-based company said it was "reviewing operations" at the site.
Following this a circular was posted on a noticeboard inside the plant indicating that there was a difficulty sourcing raw materials, while also saying that staff would be paid for work done.
The Unite trade union said it met the joint liquidators today, with a further meeting scheduled for Monday.
It said it had "serious questions" about the proposed liquidation and would be seeking a meeting with the Minister for Business, Enterprise and Innovation Heather Humphreys.
"There is an obvious question surrounding the basis for today's closure announcement and the decision to seek the appointment of liquidators, and we are taking legal advice in this regard," said Unite Ireland's senior officer Brendan Ogle.
"If it transpires that TAFC is simply trying to find a cost-effective way to extricate itself from its operations in Dundalk, Unite will leave no stone unturned ... to ensure that neither the workers nor the Irish taxpayer are asked to pick up the tab."
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On RTÉ's Six One News, Mr Ogle described the decision to close the plant as a "terrible blow for Dundalk and north Louth".
Mr Ogle said that Unite had been increasingly concerned over the last few weeks by local reports of a lack of production at the plant.
He said the liquidators have told trade union officials that they will try to find a potential new owner for the operation and to seek to dispose of the assets in a way that protects the workers.
Mr Ogle accused the company of not engaging with staff or the union for some time.
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