NORTHERN foods is halting production at its Grantham factory putting more than 700 jobs under threat, it announced today.
The Leeds-based group said the Fenland Foods site, which produces Italian ready meals for Marks & Spencer will be mothballed from August.
Northern is currently looking for other customers to fill the gap left by the withdrawal of M&S products at t
he plant, built for the high street retailer in 1987.
A 90-day consultation process starts today with the 730 workers at the business, which broke even after £45 million of sales during the last financial year.
Northern Foods chief executive Stefan Barden said: "Our immediate task is to support our loyal employees through the consultation period."
The decision to close the factory comes after a Marks & Spencer review of its supplier base.
Mr Barden said the site could remain mothballed for as long as three years while other opportunities were examined.
He said: "It's a little bit tired. We would want to refurbish it if we were to do something else. Those are the discussions we want to start with other customers.
"Those discussions could take two to three years. It's just unrealistic to keep the workforce on during that time period."
Northern Foods, whose brands include Goodfellas Pizza and Fox's biscuits, employs 11,000 people and has 22 operating sites in the UK and Ireland.
It has sought recently to bolster its fortunes by ditching lower-margin business and refocusing on faster-growing markets such as ready meals, sandwiches and salads and puddings.
Last year, the company sold its speciality bread, chilled pastry, cakes and flour mill operations as it looks to focus on key brands as part of a drive to improve performance.
Trade with Asda, Marks & Spencer, Morrisons, Sainsbury's and Tesco represents 76% of total revenues for the group.
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