Bakkavör is pulling the plug on its English Village Salads business.

The move follows a 90-day consultation, with English Village to cease trading at the end of March. One hundred and forty of the company’s 178 staff will lose their jobs.

The supplier’s existing customer and grower relationships will transfer to Melrow Salads, which is also controlled by Bakkavör.

A consultation began in December on the future of English Village, which said at the time that demand had dropped significantly as a result of Asda moving salad procurement in-house to its direct-sourcing arm IPL.

“This, combined with the ongoing challenging trading environment, continued to have a significant effect on the volume of business managed throughout the remainder of 2011 and into 2012,” said English Village in a statement. “Management has concluded the business would not be viable going forward.”

There was an earlier round of redundancies at the supplier last September, when 24 salaried staff and 50 weekly-paid staff were axed.