Administrators Paul Flint and Brian Green were appointed to the company on Tuesday (July 28) and immediately made 59 redundancies at the 165-staff business.

The majority of redundancies took place at Ward Knowles' Oswaldtwistle, Lancashire plant, where 48 out of 142 staff were sent home. Eleven out of 23 employees at the firm's Manchester site were also let go.

Administrators are currently reviewing the business and assessing whether to close it or continue to trade with a view to making a sale.

Unite branch officer Terry Thompson said: "As I understand it there are a few interested parties... I think it has just grown too quickly and suffered the consequences."

Flint added: "This administration has been the culmination of a difficult trading period, during which the firm became heavily loss-making."

The company also closed its Kidderminster subsidiary, formerly Cheshires ColourMail, in May this year.