The failure marks the second time the company has gone into administration in little more than a year after being bought back by its previous directors in May 2010.

Simon Plant and Daniel Plant of administrators SFP were appointed to the £1m-turnover Nottinghamshire business on 16 August.

The 13-staff printer, which handles work for companies such as Avery Berkel, Printronix, Datamax and TEC, is based in Ollerton Road, Tuxford.

The future of the business now lies in the hands of asset recovery firm Winterhill Largo, which is seeking a buyer for the business and assets of the east Midlands company.

Iain Gash, managing director at Winterhill Largo, said; "PLC Labels has some great regular contracts, a skilled workforce and good printing facilities. It is well placed to continue to trade well with the backing and resources of the right buyer.

"We hope that the strong client base and a good range of products will help us secure a buyer for the business as a going concern, as this would be the best outcome for both the creditors and employees."

The previous incarnation of the label printer, The Plain Label Company (PLC) was bought out of administration by Rivers Midlands, which had Andrew Kneale and fellow PLC director Michael Briggs as directors.

Speaking at the time, Briggs and Kneale blamed the company's demise on a failed fixed-price contract with its largest customer.

"Within weeks of signing the contract, self-adhesive paper prices had risen dramatically and our customer would not accept a renegotiation of prices. This meant that although other parts of the business were showing a profit, these profits were being eroded away," they said in 2010.