Bakkavor has announced plans to close a fresh fruit site in the UK after it lost a contract to supply a “major customer”.

The UK-based own-label supplier said it had started talks with the 445 staff at the Yorkshire Fresh Fruit plant in Selby, North Yorkshire. The talks are set to last 45 days.

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The statement did not name the retailer the plant supplied but reports have named the customer as Asda.

In 2012, Bakkavor closed its English Village Salads business after losing a salad packing contract with Asda.

Earlier this month, Bakkavor reported an increase in profits in 2014 as sales were boosted by new contracts in its domestic market.

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