Meat supplier Russell Hume has collapsed into administration and is axing 266 jobs following inspections into its food safety standards.
KPMG has been appointed as administrators to Derby-based Russell Hume Ltd.
The company lost several major contracts last month after Food Safety Agency (FSA) inspectors said they had uncovered "serious non-compliance" with food hygiene regulations.
In a statement, the directors of Russell Hume said: "Unfortunately, the FSA's action created impossible trading conditions for us, and after careful reflection we have decided the best thing for the company and its creditors is to put Russell Hume into administration.
"This decision has been heartbreaking. We will continue to work with the FSA with regards to the issues it raised, but we still feel its action has been out of all proportion to the concerns it says it has identified.
"Had it worked more closely with us in the crucial early stages of the situation, then more than 300 jobs may not have been lost."
'Serious and widespread'
The FSA said it had taken "proportionate action based on serious and widespread problems" and that the investigation into the company was continuing.
A spokesman added: "We do not take these decisions lightly and we recognise this will be a worrying time for employees and their families.
"It is for food businesses to ensure the food they produce is safe and our role is to provide assurances that a business is meeting its responsibilities. "Since then we have been working with the company to get assurances that their food safety management system met the legal requirements.
"As a result the Liverpool site was given permission to resume production on February 5."
Russell Hume operates from six production sites across the UK. These are in Liverpool, Birmingham, London, Boroughbridge in North Yorkshire, Exeter and Fife.
The FSA, along with Food Standards Scotland (FSS), announced this month that they will be undertaking a review of meat cutting premises and cold stores.
The review, which will be established later this month, comes in the wake of serious non-compliance issues identified at cutting plants operated by 2 Sisters Food Group.
