Hovis could end its contract with a logistics company, which would result in 40 job cuts or the entire work force.

The potential move ends a 15-year contract with Swansea Bakeries Limited, to Premier Food’s Hovis Avonmouth Depot.

The company is now said to be in a 30-day period of consultation with staff, but it has already been in talks with other firms which have offered jobs to Swansea Bakery staff, should the contract end.

Jonathan Hughes, managing director at Swansea Bakeries, told British Baker: “We’re planning for the worst, but hoping for the best.”

The company, based in Swansea Enterprise Park, released the following statement:

“Swansea Bakeries is currently consulting with employee representatives after it was announced last week that Hovis proposes to operate the work currently undertaken by SBL through their existing network.

“SBL directors will do everything to mitigate this loss by exploring all other options available. We are currently in discussion with two distribution operations.

“SBL has enjoyed an excellent working relationship with Hovis over the past 15 years and it is with regret that we find ourselves in this position. We will do everything we can to assist all our employees.”