Five Star Fish, the Grimsby-based fish processor owned by 2 Sisters Food Group, is set to close, leaving nearly 400 staff at risk of redundancy.
The operation was “heavily loss-making”, 2 Sisters said in a statement, and “despite major investment in recent years we are unable to reverse the situation”.
As a result and following a full strategic review of the business, it had concluded Five Star Fish was “not sustainable in its current form for the long term”.
The statement added: “We are having on-going discussions with our customers and with other local manufacturers to ensure we explore the full range of options available to us.
“Regrettably, we have now reached a stage where we have to enter into a period of consultation with colleagues and customers about the future of the site and what it might mean for them. It is important to emphasise that no final decisions have yet been made as the consultation process has only just begun.”
2 Sisters bought Five Star Fish out of administration in 2010 for an undisclosed amount.
Last summer, Five Star fought off competition from Young’s and Icelandic Seachill to win the M&S coated fish contract, which is worth an estimated £40m.
News of Five Star Fish’s impending closure was first reported by the Grimsby Telegraph.
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