A heat shrinkable film having a shrinkage of at least 10% measured according to ASTM 2732 in water at 90° C. in a least one of MD and TD directions, where the film comprises an outer layer comprising polyester elastomer and a core layer comprising EVOH and/or PVDC. The film can be characterized by a combination of desirable properties, such as high shrinkage, good optical properties, excellent sealability and stack sealability. A method of producing a packaged food item by using a heat shrinkable film is provided. The use of a heat shrinkable film or bags and pouches made therefrom for packaging goods, for example, food products, is also provided.