Up to 3,800 jobs could be lost at catalogue firm Grattan, according to the shop workers union.
Usdaw said its members had been left "totally shocked and distressed" by the news.
David Johnson, Usdaw national officer, said a business review by the Bradford-based firm had yielded the drastic plan.
"No one could have predicted the scale of this announcement putting up to 3,800 jobs at risk," he said.
"I have been told that this decision is not due to the economic downturn but reflects restructuring and repositioning in the traditional catalogue home shopping sector that has seen a steady decline in recent years," Mr Johnson continued.
"Many of the staff have worked for Grattan for a long time and also there are many different family generations who work for the company. They are a very hardworking and extremely loyal workforce.
"It really is a bitter blow to Bradford and the surrounding area."
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