The news workers feared, but many expected, was revealed this morning after talks to keep the crisis-hit sports car company in the resort faultered.
Workers arrived at TVR's historic Bristol Avenue factory today to be told they have lost their jobs.
They also expected to hear how talks about setting up a new company to take over car production at Bristol Avenue had collapsed because a financial package could not be put together.
But in a surprise twist union leaders were told there was a chance talks could be resurrected in the New Year.
Andy Robertson, regional organiser of the Transport and General Workers Union, said: "The circumstances are that at the moment the whole of the TVR workforce has been made redundant.
"However, there is still interest from a third party and there is a possibility that in the New Year this third party could come up with a deal.
"There are meetings going on at the moment, but we do not expect to hear anything until next week at the earliest."
Prior to today's 11th hour announcement, Mr Robertson had told The Gazette: "There is no way back - this is the end game now for TVR in Blackpool."
TVR announced in October it was out-sourcing production, possibly to Europe, next year.
A spokeswoman for TVR, which has been based in Blackpool since 1947, said: "TVR's position has not changed and we remain open to and willing to discuss any suggestion which could help the situation in Blackpool."
Unions and council chiefs had spent the past few weeks locked in talks with an un-named consortium in London.
Industry insiders said the consortium wanted to resurrect the defunct Jensen sports car brand in Blackpool, while it was hoped it could even secure a contract to make TVRs.
TVR's Russian owner Nikolai Smolenski flew north from London yesterday to inform unions how the talks had broken down.
The workers are nearing the end of a 90-day consultation period, which began in October, over redundancy.
During the last few weeks many had pinned hope on a new company coming in to save jobs.
After the broke down a spokesman for Blackpool Council, which helped broker the recent negotiations, said: "We're very disappointed to learn the talks have broken down.
"It will be a huge disappointment for everybody concerned and our thoughts are with the workers and their families at this time."
The North West Development Agency (NWDA) was also a key part of the talks.
A spokesman added: "We've been made aware the lengthy and in-depth negotiations with the proposed purchasers have fallen through despite the strenuous efforts of both the NWDA and Blackpool Council.
"We will continue to work with our partners to minimilise the impact of the local economy and its impact on the workforce."
TVR is yet to reveal where it will build its 2007 models, however rumours of a move to Italy - and the Turin-based Bertone plant - continue.