However, administrator KPMG Restructuring, which was appointed yesterday afternoon (24 February), said it was hopeful of concluding a sale of the business.

Brian Green and Paul Flint of KPMG were appointed joint administrators of both Aintree-based Character DPM Group, which also has sites in Bootle and Warrington and Character Mailing Services, which is based in Stockport.

The companies have a combined workforce of 173, with 138 of those working for Character DPM. KPMG made 20 redundancies at the Warrington facility and 24 at Mailing Services upon their appointment.

Flint said that the recession, coupled with wider issues facing the printing industry, had forced Character into cashflow problems.

He added: "Given the fact the group operates a print operation which enables it to print in-house and then feed the direct mail operation, and that it has a strong customer-base, we believe the business should prove to be an attractive opportunity to potential buyers.

"We therefore remain hopeful of securing a going-concern sale and would encourage any interested parties to contact us at their earliest convenience."

Character DPM, which changed its name from Character Mailing Services in June 2010, went on a spending spree last year. It acquired Stockport-based APG Visual Colour out of administration in June before adding Manchester printer Paramount Group in October.

Character Mailing Services also changed its name in June 2010, previously it was known as Vernons Distribution.