The company, which employs 700 people across its sites, said that it has entered into a consultation period with its employees about possible job cuts.
But they are unable to say how many jobs could be lost.
In a release, the company said: “Unfortunately, the effect of the pandemic on the sector of the foodservice and hospitality means that we must enter into consultation with staff in relation to job losses.
“In spite of our efforts to increase sales to non-core business customers, retail sales/public sales and other new markets, our weekly sales are down 65%, and it seems unlikely that the trade will recover fully until 2021.
“The major events have been cancelled, and it is likely that our main customers, such as schools, pubs, restaurants, hotels, cafes, and places of work of restoration will not be open to full capacity for several months.
“As the Government of the united KINGDOM of the seniority plan must take by the end of October, we will unfortunately need to begin the process of consultation with our staff, as well as other financial losses are kept to a minimum once Government support ends.
“We are unable to confirm how many jobs could be lost, as this depends on the extent to which our clients are able to resume the negotiation in the social distancing rules. The cuts are expected from a combination of voluntary and compulsory redundancies and the reduction of hours of work. ”
The statement added that the “security measures” would ensure that they can continue to provide its customers with a level of service that they are starting to re-open businesses.
General manager Brian Jones said: “This has been a very difficult decision, and it saddens me personally, as I know that the concern that this consultation period, will be the cause of our employees. We will do our best to support them during this period. I sincerely hope that all of the jobs lost in the short term, will eventually be re-created when the hotel industry recovers.
“After more than 30 years of building the business and the negotiation process with success, this was certainly not something that I thought we’d never have to contemplate. I would like to reassure everyone associated with our company, including our huge base of loyal customers, that the taking of these measures of protection will ensure that Castell Howell can continue to provide the levels of service that we are renowned for.”