English Village Salads (EVS) has announced it is shutting down at a cost of 140 jobs following last year's loss of a major Asda contract.
Following a 90-day consultation period with all 178 staff, the business has announced it is closing its doors at the end of March.
EVS was hit by a major setback last year when Asda took a substantial part of its salad procurement in-house to International Produce.
The firm, based in Newport in East Yorkshire, said it has made significant efforts to help staff find alternative employment in the nearby area.
It also tried to relocate staff within the Bakkavör Group, of which EVS is part, but said it expects 140 staff will be made redundant.
EVS said the contract loss, coupled with the ongoing challenging trading environment, meant the business would not be viable going forward.
Melrow Salads near Southport, which is also part of the Bakkavör Group, will take on the existing customer and grower relationships.
EVS said it would like to thank all staff for their commitment and professionalism during this difficult period.
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