Linwoods have this afternoon told employees of its intention to reduce their team by around 90 people.
Linwoods has today informed employees of its intention to restructure its business in response to a significant and long-term change in market demand. It has confirmed the ceasing of its van sales distribution business.
Their statement added: "Linwoods Health Foods and all contracted bakery production will not be affected by today’s announcement.
"Linwoods is a family business which began 60 years ago as a small grocery shop.
"In 2002 the company diversified from a bakery and dairy business into health foods. Linwoods now exports its products across the UK, Europe and Asia.
"The company has 250 full time and 45 casual employees in Northern Ireland and operates across two sites in County Armagh. "
John Woods, joint managing director of Linwoods, said: “This is obviously a very difficult decision for our company today and our priority is our people. We will do all that we can to make this process as smooth as we can for them and their families.
“Linwoods has been a business at the heart of the County Armagh community for a long time and in order to continue to do this we have had to react to a change in the requirements of our market.
“Our customers’ buying habits have changed and we have seen the demand for 800g white bread falling dramatically in recent years. When this is combined with the increasing costs for distribution of our bakery and dairy products, it has become a wholly unviable prospect for the future of our business.
“In comparison to this our health food business is growing and continues to be successful around the world. Our focus and our investment will now be placed on this side of the business.”