A letter from the new owners sent to staff and seen by PrintWeek said that due to the current economic climate and difficult trading conditions, it could not meet its costs based on current turnover, as demonstrated by the recent period of administration.

The letter, which purports to be from PBB's new managing director Simon Singleton, formerly the company's general manager, said that it was necessary to "rationalise the business".

In the letter, Singleton said that regrettably, due to problems experienced within the business, the company has made the decision to lay off a number of staff.

"The firm will make its best endeavours to apply the lay offs as fairly as possible and will inform workers on an individual basis," he said.

The letter added that in any 13-week period of lay-off, a worker is entitled to a statutory five-day lay-off payment of £21.50 per day, to be paid at the start of the period.

"If the work situation changes at any time during the 13-week period, any statutory lay-off pay will be offset against the normal resumption of wages," it added.

PBB declined to comment on which staff were being made redundant and how many may be affected.

However, a spokesman for PBB said staff are being paid, and that the company is trying to save jobs and stabilise and grow the business.

PBB has 36 staff after administrator Graham Wolloff, of Elwell Watchorn & Saxton, made seven redundant in September.
Celinco's Johanna Hiney, described by Wolloff as sales director, was unavailable to comment. 

Sources close to the deal have claimed that Michael Bennett, a former Howard Hunt Direct managing director, is in some way associated with the company.

However, Singleton denied that Bennett had been made a director or member of staff.

£3.5m-turnover PBB went into administration on 1 September due to "unsustainable pricing and low margins". It was bought out of administration by Celinco on 18 September.