About 600 jobs are at risk in South Wales after Ferrari’s food company announced it had gone into administration.
The bakery, which has 60 shops in Wales, said that lower sales and higher costs had forced the company to appoint administrators.
A statement from Ferrari’s parent company, Cleary Foods, said: “Costs are up, particularly due to higher fuel costs, increases in the minimum wage, and higher materials prices. The combination of lower sales and higher costs has meant that the margins have been squeezed.”
Leanne Wood, National Assembly AM representative for Plaid Cymru, said the job losses would be devastating for south Wales.
“I have written to the government minister asking him to look into the situation and to do all in his power to help the Ferrari workers,” she said.
A spokeswoman for the Welsh Assembly Government said government officials would be meeting with the administrators as soon as possible to discuss what support any potential buyer could be offered.