Sheffield-based business Gunstones Bakery, one of 2 Sisters Food Group’s top divisions, could cut over 500 staff as the company has lost a contract with Marks & Spencer.

Gunstones has written to trade union representatives asking them to begin consultations on the proposed job cuts, and said the production of chilled filled rolls and garlic bread will move to another supplier from 2017.

The letter revealed that redundancies could begin from 25 February 2017 and stated that Gunstones Bakery employees would be invited to relocate within the group or work in different departments.

Representatives from the Bakers, Food and Allied Workers Trade Union (BFAWU) have had three consultations with Gunstones Bakery about the proposals.

BFAWU officer Jit Singh said: “At the minute, they’re looking at a worst-case scenario of over 500 employees being made redundant.

“We’re trying to reduce the effect of redundancies as best we can - trying to find people work in new areas, trying to get them retrained. Obviously it’s devastating news for the workers at Gunstones.”

In June, 2 Sisters signed a five-year contract with Gunstones Bakery.