The climb in electricity costs was followed by the loss of two major contracts, according to Surepak, which reduced the firm’s turnover by £1m after a change in packaging requirements and a relocation abroad.

The firm, trading for over 30 years, has counted major UK chains among its clients over the years, including M&S, Waitrose, Co-op, Tesco, Aldi and Lidl. Administrators now, however, seek a buyer “as a matter of urgency”.

Surepak had been served a winding up petition by creditor Flint Ink on 3 January, with the creditors’ meeting due to be heard on 14 February.

Before the meeting took place, however, Stuart Yorston, Surepak managing director, made the decision to file for administration, and Dean Nelson and Nick Lee, business recovery and restructuring partners of PKF Smith Cooper, were appointed on 12 February.

In a statement, Surepak said the decision was made to protect the business, assets, goodwill and employees’ jobs from the winding-up petition.

An accelerated sale process will now take place, with the company continuing to trade during that time.

Nelson said: “Our aim is to preserve the business and protect employees’ jobs, in addition to maximising returns for creditors."

He added the administrators would "keep stakeholders informed of any developments as matters progress" and urged potential buyers to get in touch "as a matter of urgency".

Surepak’s latest accounts – made up to December 2022 – showed the firm in positive net assets of £770,000. The firm’s debts due within one year had fallen from £760,000 to £522,000 between 2021 and 2022, though money owed by debtors fell from £212,000 to £172,000 in the same period.

The firm reported nearly £800,000 held as stock both years.

Surepak moved to its 4,200sqm BRC AA-rated site in Nottingham in 2007. In 2022, it had 34 staff on its books.