"Spiralling" business costs a factor in Mayo factory closure 

"Spiralling" business costs a factor in Mayo factory closure 

Over 50 jobs have been lost in Claremorris following the closure of Cosmetic Creations.

The contract manufacturer, formerly known as Lynoslife, specialised in cosmetics, food supplements and nutraceuticals and closed its doors last Friday week.

It is understood all 53 staff members were made redundant as a result of the closure at the company which has been in business for over 40 years.

Aontú TD for Mayo Paul Lawless told the Western People the closure of the business is a huge loss to the town.

“This is a company that was there for decades. There was a great culture and atmosphere there. This is not just a loss for these staff members economically but to lose their colleagues as well, it was like a big family in there and is a big loss emotionally and on a personal level,” he said.

“For it to happen almost overnight has added to the hurt and the shock. It will be important going forward Government seek a meeting with IDA Ireland to build a business case to ensure a business locates or relocates to this site.”

Local Independent councillors Richard Finn and Patsy O’Brien both highlighted the “spiralling cost of doing business in Ireland” as a major factor in the closure.

They said measures introduced in isolation such as a minimum wage increase, increase in Employers’ PRSI, the introduction of auto-enrolment pension contributions, rising commercial rates and soaring costs of insurance and electricity have resulted in the “perfect storm” for businesses like Cosmetic Creations.

Cllr Finn said Cosmetic Creations closure must serve as a wake-up call.

“Fifty jobs gone in a town the size of Claremorris is not just a statistic. These are families, mortgages, and livelihoods,” he said.

“We cannot ignore the reality the cost of doing business in this country has reached unsustainable levels.”

Cllr O’Brien said the fact a modern, innovative manufacturer had been forced to close raised serious concerns about national policy.

“This was a state-of-the-art facility with a skilled workforce and a strong reputation for quality,” he said.

“If a company like that cannot survive in the current climate, then something is fundamentally wrong with how business is being treated in this country.”

Cosmetic Creations has been contacted for comment.

More in this section