Pull-out costs 150 jobs.
The management said it was a direct result of Marks & Spencer ending its long-term partnership with the company.
Employees were told on the day that Marks & Spencer had brought in Mr Luc Vandevelde, who takes over as chairman of the high street store next month. The jobs will go at the hangers recycling business at Warstock Road, Birmingham.
Mr Robin Russell, chief executive of Cork International, said the work for Marks & Spencer represented 80 per cent of the turnover, which was pounds 6 million at its peak. "Without this work we cannot sustain our staffing levels," he said.
Cork International started its garment- hanger refurbishment business with Marks & Spencer in 1994. It collected, sorted, recycled and resupplied the hangers to the company's shops. The jobs will go at the end of a 90-day consultation period.
The firm is also phasing out production of high-volume, low-value hair items at the Warstock Road factory.