North Yorkshire County Council says it is offering help to schools after a catering company which supplied schools dinners stopped trading.
Parents at schools supplied by P&A Food Management Services Limited, which is based in Carthorpe, near Bedale, have been told the firm has gone into liquidation.
The firm supplies lunches to several schools in the district.
Jessica Brudenell, a senior manager with North Yorkshire Education Services said: “We’ve been in touch with a number of schools this morning who have been affected by P&A Food Management Services ceasing trading and letting them know to contact us if they need support.
“Different schools will have different needs for catering, so we are looking at the situation on a school-by-school basis and seeing what service we can provide.”
It understood staff have not been paid for working February.
A P&A staff worker, who asked not to be named, said staff were devastated that the firm had stopped trading.
The worker added: “We have been told we will be paid at some point but we don’t know when that will be.
“People aren’t going to be able to pay their bills this month.”
One of the schools it supplies is The Wensleydale School in Leyburn.
It has told parents today that children should continue to bring in a packed lunch for the rest of the week.