Label specialist Burall Carwood has been placed into administrative receivership with BDO Stoy Hayward while its management investigates the possibility of a buyout.


Burall Carwood managing director Mike Hughes said: "Theres an MBO opportunity there, and its something were looking at with the receiver, who is advising us."


"Weve got full customer support and are trading as normal. A buyer should be found within the next few weeks, and hopefully it could be us."


The 140-employee company has invested 6m over the last three years in new equipment and relocated across the Mersey to its Birkenhead premises.


The company installed two six-colour Heidelberg Speedmasters, a Mark Andy 2200 eight-colour flexo press and an Autoflex platemaking unit.


"When we decided to upgrade our machines, there were a few teething troubles, but they have been sorted out," said Hughes.


He stressed that Burall Carwood was the only Burall Group company to be affected by the news. Other companies in the group include Burall PlasTec, Burall InfoCard, Burall Floraprint, Burall Myles and Buralls of Wisbech.


Burall Group chief executive Andy Leet said: "Every one of the employees has put a huge amount of effort into making it work. It is now hoped that a different owner can be found to deliver the full potential of Carwood."


For the year to 29 February 2000 Carwood recorded a 1m pre-tax loss. BDO Stoy Hayward joint administrative receiver Dilip Dattani was hopeful of preserving the jobs through the sale of the firm.


Story by John Davies