ABOUT 400 workers were facing the threat of redundancy for a second time last night after receivers were called into a North-East food company.

Freshbake Foods, in Hartlepool, has gone into receivership less than six months after buying the former Hibernia Foods factory at Oakesway in the town - and it was confirmed last night that at least 100 job losses were expected.

Workers face the fresh redundancy misery only months after they believed their jobs had been saved.

The receivers said they hoped trading would continue until a buyer was found for the business, but they would have to make an initial 100 job losses to continue trading.

Workers at the frozen desserts factory had the threat of redundancy hanging over them at Christmas when previous owners Hibernia Foods went into receivership after amassing debts of £17.5m.

The factory was one of three in the region - two in Hartlepool and one in Stockton - which was owned by Hibernia.

The three factories were sold off to different buyers and it was believed that Freshbake's purchase of the Oakesway site would save the jobs of most of the 390 workers there.

But Freshbake, based in Salford, called in receivers from PricewaterhouseCoopers last night.

Joint receiver, Ian Green, said: "Over the last few weeks, the directors have been attempting to raise additional finance to fund a restructuring of the business.

"Unfortunately, this has not proved successful.

"We will be holding talks with key suppliers and customers over the course of the next few days to seek their support to allow trading to continue while a purchaser is sought.

"We will also keep the workforce informed of our strategy in the days ahead."

A PricewaterhouseCoopers spokeswoman added: "We do anticipate some redundancies in the Hartlepool division.

"Unfortunately these are necessary to keep the business going. We will be getting in touch with suppliers and customers in the hope the business can keep going.

"We have been liaising with the workforce and will continue to do so."

Freshbake, which was established following a management buy-out from its US parent company, Vlastic Foods International in 2001, operates from three locations in the UK, Salford, Glasgow and Hartlepool.

It employs nearly 1,000 staff and has an annual turnover of about £65m.

Together, its three UK divisions produce a range of branded and own-label products for both supermarkets and food service industries.

Dublin-based Hibernia Foods got into financial difficulties last October and the group was broken up and sold off.

Kerry Foods bought Hibernia's ready meals business in Brenda Road, Hartlepool, helping to save more than 200 jobs, and Leeds-based Countrystyle Foods bought its site in Preston Farm, Stockton, where 400 people were employed.

Kerry later cut back on 70 of the 200 jobs at Hartlepool.

Unions blamed fierce price competition in the food industry, saying companies were suffering from increasingly low prices demanded by supermarkets.