Glisten, an independent confectionery manufacturer in the UK, has confirmed plans to shut its Glisten sweet factory in Skegness, Lincolnshire, putting more than 80 jobs at risk.
The move comes after an extensive consultation with local councils.
The company said that it did not find an alternative to operate the factory in a cost effective manner, adding that it will discuss options with the staff and get them working at its other sites.
East Lindsey District Council source Craig Leyland was quoted by the BBC as saying, "These are full-time jobs, these are people who have worked loyally for the company over a number of years.
"They have made their homes in Skegness, they are part of the spending pattern in Skegness, it will have a massive impact."
Glisten managing director Mark Adcock said: "Unfortunately, none of the proposed options addressed the fundamental issue of the cost and feasibility of increasing our manufacturing capacity in Skegness, set against the fact that we have spare capacity at our other production facilities.
"I have a responsibility to all Glisten employees and we have to ensure the best and most cost-effective use of our available resources to meet the demands of the major retail customers."