Classic Mineral Water in Lurgan, which has been in business for 76 years, supplies companies like Lidl, Dunnes, Tesco, Aldi, and Centra owner Musgrave.
It recently welcomed Economy Minister Conor Murphy and the chief executive of Invest NI to the factory for a visit.
But according to reports, its directors have confirmed that financial losses have now forced them “to enter an insolvency administration process”.
In August, the Republic’s Food Safety Authority recalled some of the company’s bottled water from supermarket shelves. Batches of its Comeragh Still Irish Still and Sparkling Water supplied to Aldi were affected.
The watchdog said the recall was a result of “possible visible particles”.
On August 8, the company said it had stopped production immediately in order to undergo a borewell cleaning programme.
The company has been contacted for comment on the administration process.
But it’s been reported that employees were told on Tuesday that the company would be entering insolvency.
A spokesman for the company told website Armagh I: “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.”
It said the investigation had led to the discovery of contamination. “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.”
Mary O’Dowd, a Sinn Fein councillor at Armagh, Banbridge and Craigavon Borough Council, said: “It is with deep regret to learn that Classic Mineral Water, which has been longstanding employer in Lurgan has entered into administration.
“My thoughts are with the workers, many of whom will feel that their jobs are now at risk.
“This will come as a huge blow to workers and families in Lurgan, as well as the local economy.
“I would encourage the company to do what it can to protect jobs and to keep staff with all developments as it charts its way through this difficult period.”
DUP Upper Bann MLA Carla Lockhart said: “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.”
According to accounts filed for the year ending March 2023, the company has 81 employees. It reported sales of £11m and pre-tax profits of around £304,000.