More than 150 workers at Remploy factories across the region will lose their jobs.
A total of five factories will be affected - Spennymoor, Gateshead, Newcastle, and Ashington in the North East, and Cleator Moor in Cumbria.
The move has provoked anger from workers and some Labour MPs who've called it 'a cruel act'. But ministers insist that many disability groups now accept that it is no longer appropriate to have segregated workplaces.
An £8 million support programme has been put in place to support those affected.
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Young's Seafood itself is now on the market. The potential sale is understood not to have an affect on the possible closure of Pinneys.