Carpets closure to lose 49 jobs

ESCALATING costs have forced a small Irish specialist carpet company to close its doors resulting in the loss of almost 50 jobs this year.

Munster Carpets manufacturing base is to be transferred to Britain causing the loss of 49 jobs in Cork following the sale of the company for just 636,000.

Munster Carpets managing director, Paul O'Callaghan said escalating costs, coupled with deteriorating market conditions over the last two years, has left the company with no option but to close.

"We just could not continue. Escalating costs wages, insurance you know the litany meant we had no choice but to call it a day. It's a very, very sad day and one that more and more Irish companies will be facing as costs go out of control," he said.

Munster Carpets has been bought by Victoria Plc. Victoria group managing director, Alan Bullock said they will cease production in Cork where Munster Carpets have been in production in Ballinlough, and later in Grange, since 1955.

"Whilst we already have a good residential market in Ireland, the acquisition of the Munster brand will significantly strengthen our presence in the contract markets both in Ireland and within the UK. At the same time, it considerably enhances the range of products that we can market and sell to each of our customer bases," he said.

Munster Carpets made a profit of €159,000 in the year to March on a turnover of €5.5 million. Last year it sold land and buildings to a partnership of directors Patrick J Quinlan and Paul Callaghan and their spouses for €1.9 million.