Over 200 workers at Waterford Wedgwood are staging a sit-in at the factory tonight after the receiver announced that production will cease today.
David Carson, the receiver appointed by the banks to the crystal and luxury tableware group, earlier announced manufacturing would cease immediately with the loss of 480 of the 800 jobs.
The visitors' centre in Waterford is also to close temporarily.
"The decision to cease manufacturing does not necessarily preclude a resumption of operations in Waterford in the future," Mr Carson said in a statement this afternoon.
The receiver said he was continuing negotiations with interested parties "with a view to a sale of the company's assets and those discussions are focused on agreeing the terms upon which a transaction could be completed."
The banks appointed Deloitte partner, Mr Carson, earlier this month after the company failed several times to meet deadlines for debt repayments. He had pledged to run it as a going concern and find a seller.
Walter Cullen, official with trade union, Unite, which represents most of the workers at the Waterford plant, branded the decision as “disgraceful”.
Mr Cullen said Mr Carson had told the union that he would consult with its representatives before making any decision on lay offs or closing the plant. “He has broken his word to us,” he said.
"We will not leave the premises until such time as the receiver has listened to alternative options with regard to closure, options that will keep alive the hope of a successful takeover," he said.
"The receiver just pulled the plug," one employee told local radio.
Two US-based investors, KPS Capital and Clarion Capital, are bidding to buy the group, and it is understood that if either bid is successful, they will keep 300 jobs at the plant.
Both have been in talks with Mr Carson and have met with trade union officials in recent weeks.
Clarion is understood to be ready to submit a bid tomorrow, while KPS has already formally expressed interest in buying the business.
It is understood that Mr Carson intends to continue with the bidding process, and is hopeful that the group can be sold. The two buyers now represent the only possibility that production will resume at the Kilbarry, Waterford plant.
Businessman Sir Anthony O’Reilly and his brother-in-law, Peter Goulandris, own 52 per cent of Waterford Wedgwood and have invested €400 million in the group.
Sir Anthony has also personally guaranteed a number of loans to the business.
Labour Party TD for Waterford Brian O’Shea this evening expressed hope that the decision by Mr Carson to close the plant will not spell the end for large-scale crystal manufacturing in the city.
Mr O’Shea said that while it is a huge blow to all involved with the company currently and in the past to see Waterford Crystal close, every effort must now be made to recover the company from receivership with as much employment as possible intact.
“I’ve been in contact with the receiver this afternoon and contrary to some earlier media reports, he assures me that while manufacturing has ceased, the receivership continues and discussions are ongoing with two interested parties,” he added.