Staff at all 12 Tile Market outlets in Northern Ireland have been assured that their jobs are safe despite the fact that a sister company in the Republic has run into trouble.

Jim McMullan, managing director of Lomac Tiles, which runs the Tile Market operation, said events in the Republic would have no impact on the company’s activities in Northern Ireland.

He said there were two separate companies — Lomac (Ireland) which runs the 14 stores in the south and Lomac Tiles which operates the outlets in Northern Ireland.

Both companies are headquartered in Lurgan, but Mr McMullan said it was only the operations in the Republic which were affected by the “rationalisation”.

At Christmas, staff in several Tile Market stores in towns including in the border counties of the Republic — including Monaghan and Sligo — were paid off after the shops closed their doors.

According to The Irish Times, one of the options being considered for Lomac (Ireland) is a creditors’ voluntary liquidation.

Mr McMullan said: “At Lomac (Ireland) we are having a meeting with PricewaterhouseCooopers in Dublin on Monday and the options will become a lot clearer then.

“But I want to make it clear that our operation in Northern Ireland is not affected by what is happening in the Republic.

“Trade at Lomac (Ireland)’s stores in border counties of the Republic has been adversely affected by the rising value of the euro.

There is no threat to the jobs of any of our 120 employees in Northern Ireland

“But in turn this has attracted shoppers from the Republic to come to Northern Ireland, and our stores in Newry, Enniskillen, Omagh and Derry are benefiting.

“Indeed, I was in Enniskillen yesterday and a couple from Tralee spent €900 on tiles for their home.”

Mr McMullan said he had been in contact with staff at outlets in Northern Ireland to assure them that they had “nothing to worry about”.

He added: “There is no threat to the jobs of any of our 120 employees in Northern Ireland.”

Tile Market began operations in Northern Ireland in 1974 and expanded to the Republic in 1986.

Earlier this week Mr McMullan wrote to his 80 employees in the Republic to advise them that Lomac (Ireland) was being affected by financial difficulties.

He said staff who were being made redundant had received all outstanding wages in their final pay packet.

According to The Irish Times, accounts for Lomac tiles (Ireland) showed it had a pre-tax profit of €258,671 in 2007, down from €522,930 in 2006.