The GPMU has been called in and a 90-day period of consultation has begun to discuss the firm's direction. Closure is one of the options open for the company, which manufactures labels for the packaging industry.

Communisis has blamed the move on "severe price erosion resulting from overcapacity in the UK market and increasing levels of low cost imports".

"Margins have been deteriorating for a period of time and it has been a cause for concern," said Communisis group human resources director Tony Commons.

Previously named Waddington Labels, the company has had a difficult past. Last August there was industrial unrest following a dispute over pay (PrintWeek, 28 August), while last September the business was part of a strategic review and considered for disposal (PrintWeek, 4 September).