The High Court has appointed a provisional liquidator to Megadale Ltd - based in Briarhill Business Park in Ballybrit.
It's after the automation equipment firm ran into financial difficulty following a customer’s cancellation of a major contract, according to the Irish Times.
The liquidator was appointed following a petition on behalf of the company itself - which began to experience major financial difficulties in May 2024.
The court heard the financial difficulties began when an order worth €8.5 million to the Ballybrit company was delayed by the customer, a multinational medical devices firm.
Megadale received assurances the delay was temporary, and was asked not to take on extra orders - so it would have capacity to eventually fulfil the contract.
The cancellation of the order was described as 'essentially devastating' for the company, which currently employs 23 people.
Other factors, the court heard, which contributed to the financial losses over the past few years were the impact of Donald Trump's tariffs and the cancellation of other projects.
The petition states that two companies are interested in acquiring the assets of the company, including employees and the firm’s property.
