One of several metal gingerbread figures stationed on the main entrances to the town was torn up and placed upside down, causing an estimated £200 damage.
The affected statue is stationed on the eastern junction of the A53 leading into the town. It was installed alongside others on the northern and western ends of the town last summer, prompted by a suggestion from former town mayoress Margaret Smith to use the town's historic title as 'the home of gingerbread' to welcome and educate tourists using the A53.
The damage to the eastern statue was discovered on Wednesday morning and reported to police.
Roger Smith was mayor of the town when his wife Margaret came up with the idea. He said she was distraught this morning to learn what had happened.
Mr Smith also speculated that the damage could be connected to ongoing incidents of political signs being damaged – signs for both independent and Conservative candidates in the town and county council elections have been attacked and taken down in recent days.
Anyone with information can contact police on 101.
Alternatively, contact Crimestoppers anonymously on 0800 555111 or at crimestoppers-uk.org