Kensey Foods is facing closure with the loss of 650 jobs.
The premium desserts company, which is owned by Samworth Brothers, said it was starting a formal consultation with staff on closing its site in Launceston.
Staff were told the news this morning. The company said it hoped that some staff could be employed at other Samworth businesses, including its bakery at Callington which makes Ginsters pasties.
In a statement, the company said:
“It is with regret that we are beginning a formal consultation with our staff regarding the potential closure of Kensey Foods in Launceston.
“Despite significant financial investment and the commitment and hard work of everyone, Kensey Foods has now been loss making for the last six years.
“When combined, the investments and annual losses have added up to tens of millions of pounds, and this is not sustainable for any business.
“In the event of a closure it is hoped there will be opportunities for a good number of individuals to redeploy to our Callington bakery (The Cornwall Bakery) and there are also vacancies across our group in other locations.
“We would also work with the local job centre, employment agencies and local companies to help people find suitable new roles.”