Park Cakes in Oldham has secured a cake contract from Marks & Spencer (M&S), replacing Avana Bakeries in South Wales.
The contract win is not expected to create new jobs, reported Insider Media.
Park Cakes spokesman was quoted by the site as saying: "Park Cakes Bakeries has had a long and fruitful relationship as a supplier to M&S and we are delighted with the award of the M&S cakes business, primarily to our site in Oldham."
A spokesman for M&S said, "As part of our work to further improve the quality of our food supply chain, we are consolidating some of our fresh desserts and cakes business and moving from two suppliers to one.
"It's not a decision we've taken lightly and understand that it will have a significant impact for Avana Bakeries. We'll do all we can to support the supplier through the process."
Around 650 jobs could now be at risk in Newport, South Wales, as 2 Sisters-owned Avana lost the M&S contract.