Up to 60 jobs could be lost after Lurgan company Classic Mineral Water entered administration.
The water bottling business, set up by the late James McKee in 1948, was forced into the move due to a contamination in its water supply.
The company distributes bottled water from its Lurgan HQ to a number of major retailers including Tesco, Aldi and Lidl.
It is understood employees were informed of the process on Monday morning, placing around 60 jobs in danger.
A spokesperson for Classic Mineral Water said: “On August 8, 2024, as part of our continuous testing to ensure optimum standards, we discovered an issue in our water supply that had quality implications. We stopped production immediately to undertake a borewell cleaning programme to attempt to resolve the matter.
“We took our advice from a leading global Hydrologist Consulting firm on the corrective actions to be undertaken. Over the following nine weeks we carried out these extensive works to allow production to recommence.
“As a result of carrying out all recommended actions we have now discovered that our water supply has been contaminated by external third-party sources.
“This contamination means that we are unable to resume production. The financial losses caused by this has forced the directors to enter an insolvency administration process.
“No further statements will be made at this time.”
The current directors are listed as Liam Duffy and Gerard Watters.
Upper Bann MP, Carla Lockhart, said: “My heart goes out to the employees, many of whom have dedicated years of service and now find themselves facing an uncertain future. Understandably, they are devastated and worried about what lies ahead.
“The news comes as a shock to many, given the popularity and reputation of the brand within the local area.
“The suddenness of the announcement has left workers and suppliers devastated and uncertain about what the future holds. With families to support and bills to pay, the impact on the lives of these workers is significant.”
The DUP representative has urgently contacted both the Department for Economy and the Department of Agriculture, Environment and Rural Affairs (DAERA), urging them to provide answers and support to those affected. She emphasised the need for immediate assistance and clarity, stating,
She added: “We need answers and support for these workers now more than ever. The community is anxiously awaiting more information about the circumstances surrounding the closure. I will work to support those affected and continue advocating for the employees and pressing for a resolution.
“For those impacted, my advice services are available, and anyone in need of benefits advice or assistance can reach out for help.”