Newcastle Production, the company that makes and distributes all Findus frozen food products in the UK, has filed for administration.
The company threw in the towel after becoming the latest victim of the financial turmoil in Iceland, with backer Landsbanki having collapsed last year.
The news throws into doubt the future of more than 400 workers at the company’s Tyneside base. The Findus license, which is owned by private equity group Lion Capital, will now be sold to a rival manufacturer.
The news comes despite a resurgence in sales of frozen food as consumers look to economise during the downturn.
Last year Findus parent FoodVest, which also includes the Young’s frozen food brand, was sold to Lion in a deal worth £1.1bn.