Nearly 300 jobs are under threat at the Wolverhampton distribution hub that Wincanton operates for Argos, after the catalogue store decided to switch the business to Corby.
The jobs include 285 warehouse and driving jobs, although Wincanton says it will do its best to find new jobs for the staff affected.
"We might also find another contract for the site - we're talking to a couple of customers about this at the moment," a spokesman says. He points out that warehouse workers are more vulnerable than drivers, because most drivers will be able to work on other routes.
USDAW (the Union of Shop, Distributive and Allied Workers), which represents most of the warehouse staff, says its members are "devastated" by the prospective closure. The union is meeting the company "to examine all the options available".
These include workers moving to Corby, although Wincanton accepts that many will be unable to make the move.
The spokesman explains: "Corby is quite a long way away - it may be more practicable to offer affected staff jobs on other contracts closer to Wolverhampton."
At Corby the Argos work is expected to create 200 jobs as well as the 450 staff already based at Max Park Industrial Estate.