Nearly 450 jobs are at risk after a factory which supplies fresh fruit to supermarkets lost a contract with a leading retailer.
Employees at Yorkshire Fresh Fruit (YFF) in Camblesforth, near Selby in the UK, were told the news by parent company Bakkavör earlier today (20 February).
The loss of a key deal with Walmart-owned Asda has been cited as the reason behind the decision.
A spokesperson for Bakkavör said: "Bakkavör can confirm it is entering into a period of consultation with all 445 employees at its YFF business in Selby with regard to a proposed closure of the YFF business following the loss of a major customer.
"The consultation process will last 45 days, during which time YFF will be working closely with Unite, the recognised trade union for the site, as well as considering all representations made on behalf of the company’s employees.
"Bakkavör appreciates that this is an unsettling and difficult time for everyone at YFF and would like to stress that this proposal in no way reflects the commitment and hard work of the employees at the site. The company will work closely with elected staff representatives to keep all staff appropriately updated throughout the consultation period."
In 2012, the firm closed its nearby English Village Salads business after it also lost business with Asda.