The news comes less than a week after sister firm Parkside Performance Films in Barnsley began a controlled winding down, with the immediate loss of 190 jobs and a further 200 redundancies in the New Year.

PricewaterhouseCoopers was this morning appointed as administrator for the flexible packaging firm, which serves the tobacco and food industries and has a turnover of 36m.

In a statement, joint administrator Edward Klempka said: "Regrettably, trading pressure on Parkside Flexibles from suppliers and customers became more intense than the directors had envisaged after the insolvency of Parkside Films in November, such that it does not have sufficient finds to allow it to continue to trade.

"Our immediate strategy will be to liaise with employees, customers and suppliers of Parkside Flexibles with a view to allowing trading to continue while we seek a buyer for its business and assets."

He said that his team would also look for a buyer for Parkside Poland, the Polish arm of the group which is otherwise unaffected by the developments.

"We are encouraged by the interest that has already been expressed by a number of parties interested in the potential acquisition of the businesses and assets of both Parkside Flexibles and Parkside Poland," said Klempka.

Ian Stokoe and Steve Ellis of PWC in Leeds are the other joint administrators.