Flintshire-based food manufacturing firm Creative Foods has announced that 149 members of staff could be set to lose their jobs as the company embarks on a consultation regarding the future of the factory.
The business specialises in the manufacturing of ready meals, but sales relating to such products have been declining over recent years, particularly in light of the horse meat scandal in 2013, when traces of the animal were detected in a lasagne meal produced at the firm's Aber Park Industrial Estate site.
In a statement, Creative Foods' parent company Brakes said its daughter firm "may no longer be a viable business", before adding that a consultation between the firm and its employees had begun, with a conclusion expected to be reached in May.
Creative Foods said the decision had been made following a thorough review of operations at the site, but promised that steps would be taken to ensure workers were supported throughout this uncertain period.
Speaking to BBC News, local councillor Alex Aldridge highlighted that closure of the factory would have a significant impact on the local area.
He said: "Normally, the sequence of events in these cases is more catastrophic for employees than on the face of it, because often, more than one person from a family works there. People could be facing multiple redundancies."
Local MP Sandy Mewes echoed Mr Aldridge's views, saying she had spoken to business minister Edwina Hart about the consequences of a potential closure, as well as to Creative Foods to see if there could be any chance of another review that wouldn't result in as many job losses.
However, she added: "The company have told me they are looking at options, including the possibility of a buyer."
Despite this, she went on to say that any job losses relating to the firm would be "a huge blow to the town and to the surrounding area".
Brakes and Creative Foods will now face extensive discussions with employees and union representatives before making a final decision, which is expected to be announced around May 26th.