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Marks and Spencer confirmed to Undercurrent News Grimsby-based Five Star Fish is taking the coated fish business from hometown rival Icelandic Seachill, with the prawn cocktail and encroute production going to others.

Earlier on Monday, Seachill confirmed it is losing the coated, prawn cocktail and encroute production for M&S, but did not say who is taking the business on.

A spokesman for the UK retailer said the coated fish business will go across the road in Grimsby to 2 Sisters-owned Five Star, however.

The prawn cocktail production will go to a Greencore plant in Northampton and Freshcook, a business owned by Bakkavor, will take on the encroute production, he said.

“As we grow our food business, improving the quality and capacity in our food supply chain is an important part of our strategy. The decision to move products from Coldwater [the former name of the Seachill plant] to three other suppliers is not one we have taken lightly, however we believe the move will further improve our fish offer and deliver new and exciting products for our customers," the spokesman said, in a statement sent to Undercurrent.

The spokesman said M&S and Seachill are "still in dialogue" on when the business will move.

Five Star, which has suffered big losses in the past few years, recently added to its team a new product development director who has previous experience with Seachill and M&S.

Last year, Undercurrent reported that Five Star had been awarded a new fish and chip range in M&S, adding to the speculation in the industry it would get more business with the retailer in the future.