The business forms printer went into administration 28 July with KPMG Restructuring who cited heavy losses after too much growth as the reason for the failure.

The addition of the Ward Knowles' Lancashire plant would bring Paragon's UK footprint to five, along with sites in Sunderland, Castleford, Bradford and Lutterworth.

Administrators Paul Flint and Brian Green have already made 48 of the 142 staff at Ward Knowles' Lancashire plant and 11 of 23 employees at the firm's Manchester site redundant.

Paragon Group has a turnover of €173m (£148m) and employs 1,178 staff across its European sites.

KPMG Restructuring was unavailable for comment at the time of publishing.

More information to follow...