The company which manufacturers the popular laser game Quasar has closed down with the loss of 22 jobs and substantial debts. The closure of the Q-Zar manufacturing plant in Tallaght, Co Dublin, follows the parent company's application for Chapter 11 bankruptcy protection from its creditors in the US.
The IDA Ireland-assisted factory, which employed 22 people manufacturing laser games, has also had judgments for substantial amounts registered against it in Dublin.
The company ceased trading on Monday this week, according to sources. An IDA Ireland spokesman said it appeared that the factory had simply closed down, although that had yet to be confirmed.
He added that the IDA was making every effort to contact the company, which has benefited from £30,000 in grants, but was unsuccessful up to late last night.
The games are the cornerstone of the Leisureplex complexes in Coolock, Stillorgan, Tallaght, Blanchardstown and Cork. However, these centres are owned by a separate company.
Earlier this week, the Q-Zar parent company, Q Entertainment Inc, which changed its name four weeks ago and is quoted on the Nasdaq and Toronto Stock Exchanges, had its share price suspended. It is understood that the company owed sums running into millions of dollars to various creditors.
According to a company statement, issued in Toronto, it has been trying to restructure over the past few months but was unable to get the required equity. The company also confirmed that it was unable to make an interest payment to debenture holders.
In addition three board members - Mr Robert Harris, Mr John Kearney and Mr Steven Vorono - have resigned.
In Dublin on Tuesday, the Master of the High Court gave liberty to enter final judgment for $300,000 for the plaintiff, a German company, Laser 2000, against the Irish subsidiary. Several Irish companies are also understood to be owed money.
The company's Dublin solicitors were unaware that it had closed or that the US parent was filing for Chapter 11 protection when contacted yesterday.
Q-Zar has consistently reported good results since it was set up in 1990. In its early days it was owned by Leisurecorp, whose directors included U2's accountant, Mr Osmond Kilkenny, as well as businessmen, Mr Ivano Caffolla and Mr Brian Murphy. However, these three have had no involvement in recent years, as Leisurecorp sold out its interests in Q-Zar in two stages.
In 1993, Mr Tom Butler bought out most of the rights from Leisurecorp. Then, in 1995, Mr Butler bought the right to the manufacturing plant in Tallaght. Mr Cafola and Mr Murphy resigned as directors of the manufacturing company in August 1995.
The combined price of the acquisitions by Mr Butler is understood to be in excess of $10 million (£6.62 million).
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