Seafood group Icelandic Seachill has set out plans to end ready-meal production in the UK, a move that could lead to 250 staff losing their jobs.

Seachill, a supplier of own-label ready meals, said a drop in consumer demand for ready meals had prompted its decision, which it is now discussing with employees.

The company plans to continue manufacturing deli and Christmas products. Chief executive Malcolm Eley said: "We are proposing to retain the successful deli and Christmas business. However, without a significant growth in the volume of meals produced we do not believe that it would be possible to justify the level of investment required to sustain ready meal production."

He added: "It is a regrettable position but if the proposals do go ahead, our number one priority is to support those directly impacted and we will do everything in our power to redeploy as many people as possible across our other UK sites."

Icelandic Seachill also owns The Saucy Fish Co. brand. It is part of Iceland-based processor Icelandic Group.