Northern Foods yesterday announced plans to close a bakery in Manchester with the loss of about 690 jobs.
The Leeds-based company said the site, which produces a range of chilled pastry products, made losses of more than £3 million in 2005/06.
The proposal to close the Trafford Park Bakery forms part of Northern's preparations for the sale of its pastry division - a key part of a restructuring plan announced in late May.
Northern is best known for making Goodfella's Pizzas and Fox's Biscuits.
The company plans to focus on key categories - pizza, biscuits, ready meals, sandwiches and Christmas puddings.
The pastry division includes the Palethorpes pies, pasties, sausage rolls and Asda brand quiches factory employing 700 people at Market Drayton in Shropshire.