The future of the London Banger brand is in doubt after Tulip announced proposals to cease fresh sausage production at its Peckham factory.

The Danish pork specialist has begun a 90-day consultation with staff over the closure, which would see the loss of 375 jobs. Infrastructure restrictions, environmental issues and a lack of space at the 50-year-old plant were behind the decision, the company said.

Although a number of lines are produced at the Peckham site, including the Tulip and Oak Crown brands, the London Banger is thought to be the one in most jeopardy as it has strong regional associations and is not produced at other sites.

The London Banger would remain on shelves for at least the next year, said financial director Ian Bagnell, adding that Tulip was hopeful the sausage would not disappear altogether. “We do want to keep it on shelves in some form,” he said.

One senior industry source claimed Tulip had not yet decided what to do with the brand long-term, but added further investment would be needed to make more of an impact in the crowded sausage category. “I think the jury is out,” he said. “You make the initial investment, but then you need to go on. They must either continue investing or start all over again with a new brand.”

The brand had successfully secured a number of listings and awards, he added, and Tulip could switch production to another facility. “If they move it from London they could still call it a London Banger. It’s a London recipe so it’s not insurmountable. I hope they don’t discontinue it.”