Around 250 jobs will go at the Blackpool-based company, owned by Russian oligarch Nikolai Smolensky since 2004.
There had been hopes that the company would move to another site in the region but workers were informed of the plans on Wednesday as consultation with unions over redundancies began.
Smolensky said: "We are extremely sorry that, after a period of uncertainty and raised hopes that we could continue production ourselves in Blackpool, we have had to make this decision. "We need to secure the future of the company and move it forward. I am afraid we see no other way to do so. We are acutely aware of the shock and distress this will cause for our staff and their families. We will ensure that we meet all our responsibilities towards them over the coming months."
He added that he hoped his long-term plans for the company will be a "major advance" for the firm.
The Transport and General Workers Union, the trade union representing the TVR workers, said the news was ‘bitterly disappointing’ after hopes had been raised just a few weeks ago that production would stay in Blackpool.
“This is a bitter blow for Blackpool and an iconic British sports car,” said Dave McCall, T&G North West regional secretary. “It is particularly hard to take in after everyone’s hopes had been raised just a few months ago when workers who had been laid off were taken back.”
The T&G has been involved with the company, local MPs, Blackpool Council and others in seeking to find ways to keep production in Blackpool. Hopes for the future had been raised when not just the laid off workers were re-hired but when an alternative production site in Blackpool appeared to have been found.