The group plans to relocate the company to its Boston, Lincolnshire digital print site.

Paragon’s move comes a little more than a year after it acquired the business after purchasing the assets of the label division of William Sessions, which traded as Sessions of York, out of administration on 21 April 2010.

Lapping said the firm had intended to stay in York, but that the search for a suitable site had proved fruitless.

"After 14 months we haven’t found one – we’ve looked at sites in York, Selby and latterly in Leeds, but there was nothing."

He added: "The one thing we knew from the beginning was that that site was going to be sold.

"So, given there’s nothing viable there, we’ve come up with what we think is the best alternative. We’ve put it to the employees and their elected representatives, who we are sitting down with on a regular basis."

If the move goes ahead, it will see Session’s flexo kit moved to Paragon’s Boston plant, which the group says would give the business a good platform on which to move forward.

"We’d move the majority of the machines and we’d also hope to move a good number of the people – they’ll all be offered relocation opportunities and we’ll support each of them individually based on their different needs, but that’s all pending the consultation," he added.

Paragon has a turnover of £135m and employs around 950 staff. Sessions’ label business has a turnover in the region of £4m.