Sweet manufacturer Glisten has confirmed it will close its Lincolnshire facility, putting 80 jobs at risk.
The independent confectionery manufacturer, which operates out of Skegness, is to move production to Leicester and the Czech Republic.
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.
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.”
The move comes as a blow to the town’s local economy, following a long consultation period with the local council in an effort to get the company to remain in the town.
Craig Leyland from East Lindsey District Council said: “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.”