Connected companies West Island and Intereel Group went into administration with insolvency practitioner Tenon Recovery at the end of last month, while another business, Creation Greetings, went into liquidation.

The companies worked together, offering a combination of greetings card printing, label printing and litho and packaging printing.

While the litho and packaging parts of the business were liquidated, the label arm has been sold to West Island Label Store (WILS) – a joint venture between former West Island managing director Andrew Brozowski and Robin Stammers, managing director of Beverley-based The Label Store. WILS will operate as a separate entity to The Label Store.

A total of 18 jobs were lost when the litho and packaging side was closed, but 24 still remain at WILS. Creation Greetings has been broken up, with several other companies taking on the assets.

West Island Group, the holding company for the failed businesses, now sits dormant.

Brozowski told PrintWeek: "Some of the aspects have been merged, but we will operate as a separate entity. You see people in the same sector at functions and you share information. Because Robin has his own label company he was interested."

According to Brozowski the company was hit in the last year by two major contract losses, including a £2m loss when Woolworths went bust. The company also planned to move to Cowes and sell its land for housing, but the local council denied it planning access, Brozowski said.

He added: "It is frightening how quickly these things can come about. A year ago we were a strong company buying another, we used to be a £6m business. All of a sudden we are with the receivers. It is embarrassing."