More than 450 jobs are at risk at one of Boston's biggest employers
Tulip Ltd is one of the UK's largest meat processing companies.
Tulip Ltd's Boston plant supplies Marks & Spencer, but the meat firm said it had been unsuccessful in securing a new deal with the High Street giant, it has been reported by the BBC.
It said the site, which employs 464 people, would close in August if new customers could not be found.
A leading county councillor said the news would come as a surprise to many, and expressed sympathy to those affected.
Cllr Colin Davie, executive member for economy and place for Lincolnshire County Council, said: "We were sorry to hear about the situation at Tulip Food, which I think has come as a surprise to many. Our thoughts are with the staff and their families at this difficult time.
"If these job losses do go ahead, we will, of course, work with Jobcentre Plus and our other partners to support those affected.
"And we continue to work hard to attract new businesses and investment into the area, creating new job opportunities for the town."