UK fish products supplier Icelandic Seachill has confirmed that it will close a deli plant in Grimsby, resulting in 86 job losses.
The move was taken after losing a contract with Marks and Spencer.
The company plans to stop production at the deli site on Estate Road Five in spring 2017, Grimsby Telegraph reported.
A major part of the contract has been grabbed by another Grimsby processor Five Star Fish.
An Icelandic Seachill spokesperson was quoted by the publication as saying: "Following M&S's decision to transfer all their business with Icelandic Seachill to an alternative supplier, in June of this year we announced a proposal to close the existing Icelandic Seachill deli site and transfer production into our coated site.
"We entered into collective consultations with Unite the Union and elected representatives of our monthly paid employees. This milestone has now been reached and the consultations have now broadly concluded.
"We can confirm that the deli site location is expected to close at the end of March 2017 and remaining products will be relocated to the coated site location.”
The company said that consultations with employees to continue until the end of August as the recruitment process for other roles remains in place.
The job losses from were pegged at over 200 initially. They are expected to come down further due to opportunities created in the chilled sector of the £260 million turnover business, the publication said.
2 Food Group, owner of Five Star Fish, announced plans to recruit between 70 and 100 employees.
In 2014, Icelandic Seachill ended ready meal production at its Meals West site at the South Humberside Industrial Estate.