Tom Jack, Roy Bailey and Alan Bloom were appointed as joint administrators to the Ellesmere Port, Liverpool-based company on 2 February, at the request of the directors.

The recycled paper mill employs 300 staff and has a production capacity of 220,000 tonnes per annum.

Jack said: "We are continuing to trade the business as we explore all options, which include looking for a buyer for the business as a going concern.

"We are grateful for the support of all customers, employees and suppliers as we continue to satisfy customer demands."

A spokeswoman for Ernst & Young said it was too early to know how long the staff would be laid off.

She claimed the mill had "traded at a loss for some time and the directors concluded the business could no longer meet its debts as they fell due".

The administrators have been in talks with a number of interested parties, she added.

BPCL subsidiaries Cheshire Recycling and Abitibi-Consolidated Europe SA are not affected by the administration.

Peter Ellis, Unite national officer, said the site and parent company AbitibiBowater had been in difficulty for some time.

In April 2009, US newsprint manufacturer AbitibiBowter filed for creditor protection after lenders refused a proposed debt restructuring plan.

The company announced that it and its US and Canadian subsidiaries had filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code and the Canadian equivalent.

AbitibiBowater's subsidiaries outside the US and Canada were not included in the filing.