Receiver appointed at Polystar in Omagh

A CO Tyrone company which makes a range of insulation products has gone into receivership. The Omaghbased firm, Polystar, which moved into a new £3.8 million factory in February, is understood to have been the victim of increased competition, and had failed in its efforts to diversify. More than 30 people have already been laid off, leaving another 20 to run the scaled down operation, which the receiver is hoping to sell as a going concern.

The situation has been complicated by the fact that some employees had taken out loans to invest in a sister company of Polystar. They are now faced with having to repay amounts of between £5,000 and £15,000. A number of them have complained that they were not made fully aware of the risks when they became involved in the scheme, and some are taking legal advice.