The 28-staff division, called Bardon Mailing Company, is currently in a consultation period. Howitt is to offer jobs at its Sutton in Ashfield site.

Howitt bought the division, formerly part of Vertis Leicester, last month from administrator UHY Hacker Young. However, it only bought the assets of the firm and has not been able to negotiate a lease renewal with the building's landlord.

Kit is to be moved from Bardon into Sutton in Ashfield and Croydon facilities.

Meanwhile, an undisclosed number of redundancies have been made at the Croydon site, previously Olwen Direct Mail. Howitt chief executive Nick Dixon would not comment on the numbers involved.

"It was a division that was not in a great state when Vertis had it and we have had to make it more profitable," he said.

Howitt bought Croydon-based Olwen Direct Mail and VMT from Mark Scanlon's investment vehicle Overgoal.

- Swindon-based Frog Fulfilment has been placed into administration but will continue to trade.

The administrator at the former Vertis site is UHY Hacker Young. Print investor and restructuring specialist Mark Scanlon bought Frog Fulfilment in September.

2005 Timeline
- September Mark Scanlon buys Vertis' UK DM and fulfilment arm

- October Vertis Leicester placed into administration. Vertis Croydon reverts to Olwen name and is subsequently bought by Howitt

- November Howitt buys the former Vertis Leicester mailing site in Bardon

- December Bardon to cease production after lease negotiations break down