The market issues were compounded by damage to the Woolston facilities - which produces crumbed and battered fish products - resulting from the Canterbury earthquakes.
"We understand the concern that this announcement will cause for our staff, many of whom have been with us for a considerable time," said Allison.
"We will be consulting with them and their representatives. We want to ensure that Independent Fisheries continues as a viable company making a valuable contribution to the Canterbury economy, but it is clear that we cannot do so under our current structure."
The company hopes to be in a position to announce the outcome of the consultation process on November 8.
Other parts of the company will not be affected by the review, the statement said.
On its website, Independent Fisheries says it employs 350 permanent staff to service its New Zealand operations.
"The majority of the workforce is long serving employees with some reaching their 30-year milestone," the site reads.
The union representing workers at Independent Fisheries has called on the Government to back the 200 people under threat.
"These Christchurch workers have been through enough insecurity in the past two years and are devastated at the thought of losing their jobs,'' said Ian Hodgetts from the Service and Food Workers Union.
"More job losses in Christchurch should not be an option. Government needs to play a role."
Hodgetts said the union was in consultation with Independent Fisheries on the proposal.
