Glenn Smith, managing director of Ward Knowles, said: "We looked at every possible option that was sensible and there were no options to save this site. It could not make money with the type of work that was going through there.

"The lack of direct mail is what pulled it down. It did do some other work as well, but the lack of direct mail work and the price, and the added value per hour for direct mail being printed four-back-four on web presses meant that it couldn't make money."

PrintWeek understands that the Kidderminster-based company's staff, thought to number around 30, were sent home at 1:30pm on Friday, at which time the company ceased trading.

Nick Brierley of Leonard Curtis confirmed that the insolvency practioner had been instructed by Ward Knowles and that it would advise the company until its appointment could be approved at a meeting of creditors, expected to be held in early June.

He said: "The company's not in liquidation as yet. We've just been instructed by the directors to commence proceedings.

"At the moment the company's affairs are still in the hands of the directors."

Ward Knowles' Manchester and Accrington sites are understood to be unaffected by the move.