A major warehouse in Daventry is set to close, affecting some 200 workers.
Staff at the Tesco distribution warehouse in Royal Oak Way North run by Wincanton were told last week that the supermarket chain was not going to renew its contract.
All staff will be offered jobs with Tesco at other sites in the Daventry area over the coming 12 months.
A Tesco spokesperson said: “We have notified Wincanton that we no longer plan to use the site they operate for us at Daventry.
“This follows a review of our non-food business, and the decision to move our general merchandise distribution operation to Chesterfield.
“We’ll be working with Wincanton to support affected staff through the consultation which has now begun, and as part of that all staff will be offered the chance to take up other roles with Tesco.”
A Wincanton spokesperson said: “Should the proposal go ahead, the site will close in June 2014 when the lease expires.
“Formal consultation with our employees and their representatives has already started. This consultation process is designed to give employees the opportunity to discuss and provide input into the proposal to try to avoid closure and secure employment.
“Wincanton and Tesco will explore all opportunities that may exist for alternative employment elsewhere within the business including other opportunities within Daventry and the nearby vicinity.
“Both Tesco and Wincanton wish to make it clear that this proposal is in no way a reflection of the commitment and contribution of the Wincanton team in Daventry whose performance has been exemplary throughout the life of the contract.”