Up to 40 roles could be lost at Whitby Seafoods after a period of soaring costs

In a statement, the company said: “After a period of increasing costs across its operations, including inflation in quayside prices, combined with a reduction in sales volumes, the company has had to consider ways to cut costs.

"Regrettably, this means a number of roles are at risk in the company’s Whitby factory and office.”

Whitby Seafoods’ Managing Director, Daniel Whittle, said: "Our excellent and hard-working colleagues are the backbone of our business, and we are sad that the challenging external environment has left us with no choice other than to take this step.”

The consultation process will take place over the coming weeks before a final decision is made, the statement added.

Whitby Seafoods was founded by businessman Graham Whittle in 1985 as a “one man and a boat” business.

Today, the company makes more than one million portions of scampi a week and all three of Mr Whittle’s children have joined the business.

The company has undertaken many projects to support the local community, including the Seafood Social, a social enterprise which aims to tackle homelessness around Whitby.

Businesses across a wide range of sectors have been hit with rising costs over the last 18 months.

Whitby Seafoods remains an independent family-run business operating from sites, in Whitby, and from the Northern Irish port of Kilkeel. The business employs 392 people across both sites, with 188 jobs based in Whitby.