Deputy general secretary Tony Burke said the redundancies, which amount to a quarter of the workforce, were totally ruthless.

The firm, based in Darwen, Lancashire, went into administrative receivership on 26 June, appointing Ernst & Young. Some of its business was focused on printing wallcoverings.

Burke claimed that, on their appointment, Ernst & Young had stated there would be no immediate redundancies. Failure to consult with the union was in breach of employment law, he said.

But a spokeswoman for Ernst & Young said there had been no breach of legislation, and that the redundancies had been taken in consultation with management.

We had no choice but to reduce costs, and there was not enough time to go through all the formal processes, said the spokeswoman.

Receivers are in talks with several interested parties to find a buyer for the business.

The company, part of the Imperial Home Dcor Group, appointed Ernst & Young after a restructuring failed to leave it with adequate working capital to continue trading.