Hundreds of jobs are under threat after crisp maker Golden Wonder was forced into administration as it struggled to compete with larger rival Walkers.
Administrators Kroll were called in yesterday after Golden Wonder followed up losses of £10.8 million in 2004 with "significant losses" in 2005.
Kroll said it was too early to say what would happen to Golden Wonder's 850 staff but said it hoped the business could be saved.
However, a decision was taken to close part of the site at Corby, Northamptonshire, where 350 people work, which ws the largest plant in the world at one time.
Golden Wonder, which produces Nik-Naks, Wheat Crunchies and Ringos and launched Pot Noodles, also has sites at Market Har-borough in Leicestershire and Scunthorpe in Humberside.
Kroll administrator Adrian Wolstenholme said: "We hope that the administration will provide further time to review the options available."
Union Usdaw said the announcement "had left staff devastated".