Administrative receivers from Kroll were appointed to the DVD and video packaging firm last Monday (13 October), but due to the loss of a major current order they had no other option but to close the business with immediate effect to ensure it met creditors obligations.

The company relocated from Manchester in 2001 after it received 390,000 from the Welsh assembly, under the proviso that it would create 60 jobs in the area. But despite its failure, the firm was believed to have met the criteria.

The 100 staff at the Sandycroft facility were made redundant on Friday and the remaining assets are to be sold.

Joint administrative receivers David Whitehouse and Simon Wilson are now conducting an intensive review of the business, including assessing the reasons for the failure.

Its very unfortunate but we were left with no other logical option than to close the facility, since with no order book the business would have only accumulated further liabilities. Allowing it to do so would have been in breach of our duties to creditors, said Whitehouse.