A third of workers at Yarrows Bakery will lose their jobs.
The South Taranaki-based company called in the receivers at the start of the month.
EPMU Palmerston North lead organiser Wayne Ruscoe says between 40 and 45 people are to be made redundant.
He says two thirds of workers have been offered new jobs by the receivers BDO.
Mr Ruscoe says the decision to retain a reduced work force at the bakery suggests that prospects are still good for sale of the business as a going concern.
- Newstalk ZB