According to a spokesman at insolvency practitioner Begbies Traynor, the company has now ceased trading. It is understood that more than 40 staff have lost their jobs following the closure.

At the time of writing, the company was not in liquidation, but Begbies is expected to be appointed as liquidator imminently.

According to Begbies, Colourworld Winchester's administration follows a reduction in the company's turnover, stemming from the recession, as well as a tightening of credit terms.

Colourworld Print Solutions was created in 2008 through the merger of Colourworld Creative and Colourworld Printers.

The closure of the Winchester printer may come as a surprise as the company had recorded two good years of trading.

In its results to March 2009, it made a pre-tax profit of £94,000 on a £2.6m turnover, which increased to £133,000 pre-tax profit from a £3.5m turnover for the year ending March 2010.

The increase was predicted by the Colourworld's directors after the company invested £500,000 in a 10-colour Heidelberg Speedmaster, the company's first B1 press, in early 2009.