Hundreds of jobs will be lost as SeaFrance lost its battle for survival yesterday after being liquidated by a French court.

Almost 1000 jobs will be lost in total, including that of 127 French workers, who had expressed interest to take over the company.

The workers lost their jobs in Dover after the ruling said there was no credible future for SeaFrance.

Officials at the Tribunal de Commerce in Paris acted after the European Commission confirmed government assistance to the stricken operator was illegal.

SeaFrance, who said it was ‘sad’ about the news, had operated three ferries on the Dover to Calais route.

However, the service was suspended in November. The French firm went into receivership in 2010.

Channel tunnel operator Eurotunnel may bid for SeaFrance’s ships from the company’s administrator, according to reports.

The news could impact on travellers, whose costs to travel the Channel could rise.