One of South Taranaki's biggest employers, Yarrows Bakers, has been placed in receivership.
About 200 people work in the bakery in the small town of Manaia.
Accountants BDO have been brought in to take over the New Zealand-owned third generation family company that began in 1923.
The announcement on Tuesday did not come as a total surprise, as staff had feared job losses from December last year.
Radio New Zealand understands the company has been on the market for some time and sale talks are continuing.
Receiver Brian Mayo Smith of BDO says the company will continue to operate until a buyer is found.
Mr Mayo Smith told Checkpoint Yarrows' directors requested that the company be placed into receivership due to a number of problems which could not be resolved.
He said the only business in receivership at this stage is the factory in Manaia. Other operations in Rotorua and Australia are not affected.
South Taranaki mayor Ross Dunlop said is not good news as unemployment is high in the region.
Mr Dunlop told Checkpoint he has spoken to the receivers about how the council can help if the company is struggling to pay its rates.
The Manaia factory is a big sponsor of sport throughout Taranaki, he says.
Yarrows began exporting in the late 1970s and in 1996 won the contract for the Subway sandwich chain throughout Australasia.
It produces 30,000 frozen dough rolls a week for Subway in New Zealand, Australia and parts of Asia.
It also supplies frozen dough to Foodstuffs supermarkets in New Zealand and Coles in Australia, as well as to North America, the Pacific, United Arab Emirates and Japan.