Irish Pride, which has bakeries in Taghmon and Ballinrobe, County Mayo, has gone into receivership, but staff have been told their salaries will be paid and production will continue.
Staff at the two bakeries were handed letters on Thursday informing them that 'with considerable regret' the company would come under the control of a receiver.
The letter, signed by Managing Director John Keenan, said the change in control would not result in an interruption to trading and the company would 'trade normally'.
Security guards were on the gates of the Taghmon bakery on Friday.
'There's nothing being released at the moment,' Irish Pride in Dublin said on Friday morning when asked what was happening in Taghmon.
Irish Pride employ 125 people in the village, but they are also indirectly responsible for at least another 50 jobs, particularly as they use local services wherever possible.