Up to 140 jobs could be lost in Carlisle as a food supplier has been notified of its potential closure by its parent company.

In a letter seen by the News & Star, employees of Calder Foods, based on Burgh Road, have been told they are at risk of redundancy, with the foods to go business potentially closing by the third quarter of 2021.

Parent company Creative Foods told staff members in a letter: “As you are all aware, Calder Foods has seen a drop in volume as a result of the ongoing Covid-19 crisis.

"In reaction to this, we have furloughed a high percentage of our staff and rationalised the operation to simplify our business.

“Despite this we continue to run at a loss.”

The letter continues: “We cannot see how this situation will change for the Calder Foods business to run to profit.”

A spokesman for the company confirmed the site could close.

“Creative Foods has announced its proposal to cease operations at its Calder Foods facility in Carlisle, and to relocate production to its site in Burton upon Trent," he told the News & Star.

“It is proposed that current products are transferred to the Burton site in a phased manner, where costs will be lower, giving a greater likelihood that the business will return to profitability even allowing for the anticipated historically low volumes.”

Creative Foods Europe’s chief executive Marcus O’Sullivan said: “Proposing to close the site at Calder Foods was a difficult decision considering the potential impact on our employees, but was necessary in order for us to remain a viable business in this current economical environment.

“This decision in no way reflects on the performance and dedication of our affected employees who have demonstrated great support and commitment. As we go through the consultation process, we will work to ensure all affected employees receive proper assistance.”