Swancote Foods is facing closure after owner Produce Investments announced a 30-day consultation with staff.
The Telford-based firm produces processed potatoes for the food manufacturing sector. The company was started in 1995 to take advantage of opportunities in cooked potato supply, before being acquired by Greenvale in 2007.
Swancote has been a struggling part of the business in recent years, and Produce Investments has regularly flagged it up as underperforming. It also racked up a seven-figure loss following a metal contamination issue at the division in 2015.
A statement from Produce Investments said: "The Board of PI confirmed that the business has been operating at a loss for a number of years and that despite the best efforts of management and employees to improve the company’s fortunes, the business’ financial performance remains unsustainable.
"Further information will be communicated post conclusion of the consultation process."