The company, which was formed out of Winchester Growers this year, supplies millions of tulips, lilies, gladioli, sweet williams and sunflowers to Tesco, Waitrose and Sainsbury's. It employs a total of 118 staff at Nocton and Pinchbeck. The parent company is Univeg, which also operates a £170m fruit business in Lincolnshire.
At the start of the year, Winchester Growers separated out the daffodil-growing business, which will continue growing as normal. It will focus on daffodil production in Cornwall.
Lincsflora, which runs the growing operation in Lincolnshire, informed staff on 30 January that it was looking at proposals to close.
Joint managing director Mike Harpham said: "We had to inform staff of a consultation following a strategic review of 45 days starting on 9 February."
He added that the best time to stop would be at the end of May after Valentine's Day, Mother's Day and Easter peaks. The company has been on the market but is not currently talking to any interested parties.
The strategic review looked at future investment required to make the business a leading standard flower producer and packer. "If you're going to be any good you need to be leading standard," said Harpham.
The review said there was "quite a heavy investment required by shareholders" and they "decided they didn't want to continue with investing with that particular business", he added.
"We're now looking at other options, which are to sell or close if we can't find an interested party."