The troubled Attleborough business is for sale, with chief executive Martyn Bromley telling the BBC that negotiations were ongoing to “find the right home for the business”.
He added that 2 businesses had bid for Banham, 1 which would close the Attleborough operation, while the other would keep it open.
But local MP George Freeman said in a tweet: “I understand not in administration but Lloyd’s bank pushing in that direction if a buyer cannot be secured.”
Mr Bromley denied this was the case, saying it had been a “complete misunderstanding”.
Banham Poultry is a family owned business with a turnover of around £100m a year.