SeaFrance employs nearly 1,000 people on both sides of the ChannelFerry firm SeaFrance has been officially liquidated by a French court and told to cease activity, with the loss of 130 jobs in the UK.
The Tribunal de Commerce decided its future after the European Commission ruled that a 200m Euros (£176m) bailout by the French government was illegal.
The court said the offer by a cooperative of SeaFrance employees was not acceptable.
A SeaFrance spokesman said almost 130 jobs would be lost in Dover.
Conservative MP for Dover and Deal Charlie Elphicke said the announcement was a "real concern" for the port and the people of Dover.
Eurotunnel has not ruled out a future bid for the cross-channel ferry firm, which employs nearly 1,000 people.
'Booking refunds'A spokesman said Eurotunnel would "now be working to see what the fair value of the assets" were before making any decision.
Sailings by SeaFrance between Dover and Calais were suspended in November.
The French firm went into receivership in 2010.
The company had four ferries sailing between Dover and Calais, carrying more than 3.5 million passengers a year.
A spokeswoman from SeaFrance said: "We can confirm that the Tribunal de Commerce has made the decision to liquidate the company.
"Provision has been made to ensure that all customers with pre-existing bookings will receive refunds."
She urged customers to contact SeaFrance for details.
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