THE jobs of almost 1,100 workers hung in the balance last night after a frozen food manufacturer went into receivership.

Workers at Hibernia Foods in Stockton and Hartlepool were told the news as they started work yesterday morning.

The announcement came only weeks after the company announced it planned a £3m expansion, creating 100 jobs.

It is believed that Hibernia Foods has debts including a bill of more than £17.25m owed to one company.

Last night, London-based receivers KPMG said there were no plans to make immediate redundancies.

One worker at the Stockton plant, on Preston Farm industrial estate, who asked not to be named, said: "They told us we were in receivership and we've to work on as normal but not a lot more.

"People are angry, very angry, that we've been kept in the dark and they're still not giving us details."

Other workers said they had noticed that contracts had been drying up in recent weeks.

Rayner Peett, spokesman for KPMG Corporate Recovery, said they were called in on Friday night.

He said: "There are no plans to make immediate redundancies at the Hartlepool or the Stockton factories. We can confirm the debt is in the millions but cannot give further details.

"The business will continue as a going concern, and we are looking for buyers and making consultations with everyone concerned."

Alan Milne, regional officer of the Bakers, Food and Allied Workers Union, was optimistic a buyer could be found.

He said: "It's a bitter blow, but we believe the situation can be turned round and a buyer found. After all, this company accounts for 55 per cent of the frozen food trade, and it is an excellent product.

"The guys at work are quite clearly flexible, multi-skilled and have a lot of pride in their work."

Rob McMullen, area manager for the North-East Chamber of Commerce, said any closure would be a major blow for the region.

He said: "It is not only the effect on the lives of the people who work there but other businesses who depend on Hibernia Foods."

Frank Cook, Labour MP for Stockton North, said if the business closed it would affect the whole of the North-East.

He said: "This is a setback for the entire region, especially when we've been making quiet progress to improve the economic state of the region - and particularly Teesside.

"I'll be finding out more in the coming days and will be keeping my fingers crossed this can be turned round - but you need to sell a lot of pork pies to wipe out a £17m debt."

No one at Hibernia Foods, which earlier this month spoke of "confidence in our future", would comment yesterday.

A total of 400 people are employed at the Stockton site, 493 at Oaksway, Hartlepool, and 200 at the factory in Hartlepool's Brenda Road.

The company produces Sara Lee bakery products, Mr Brain's faggots, Entenmann's chilled deserts, as well as a number of own-label products for supermarket chains.

Hartlepool MP Peter Mandelson said: "Those jobs are crucial to many families across our town and I hope a positive outcome is soon found. While business is trading there is hope, and I will be speaking to the receivers to see what I can do to help them safeguard these much needed jobs."