Whanganui Mayor Annette Main said she was told about the proposal yesterday afternoon and was planning to talk more with Cavalier Bremworth management as soon as she could.
"At this stage it's only a proposal, so we need to wait and see what comes from the discussions with staff.
"We understand that this is a company decision, but it affects all of Whanganui.
"If this goes ahead, it will be a huge blow," Ms Main said.