Potato producer CêlaVita is expected to file for bankruptcy later this week with the potential loss of 215 jobs.

The company, based in Wezep, Gelderland, supplied supermarkets, hotels, restaurants and institutions across Europe, but had been struggling financially for some time.

A month ago unions rejected a final offer from the company in negotiations for a new pay deal and said a majority of workers were prepared to take industrial action. The company had also announced a restructuring programme to focus more on producing chips.

Margreet Pasman, official with the FNV union, said the news of the company’s demise was “not surprising, but sad, especially for our colleagues.” CêlaVita did not respond to requests for comment from Dutch media.

It is not clear what the consequences will be for the 215 staff on the payroll or whether managers will attempt to restart the company.

Founded in 1967, CêlaVita was owned by Canadian food producer McCain from 2012 until last year, when it was sold to an investment group, Nimbus. Since then it has operated as an independent Dutch firm, CêlaVita Foods BV.