It has been particularly badly hit by a slump in demand for airline baggage labels since 11 September.

The firm, which employs 94 staff, turned over 13m in the nine months to 31 December 2001, but sales have fallen by a third over the past five years from a peak of 30.6m in 1996. Overseas sales almost halved during that period to 7.6m.

It last full-year accounts, to 31 March 2001, showed a pre-tax profit of 2.5m on sales of 20.3m, but the firm made an operating loss and was aided by a 3m exceptional gain.

Its German parent company, Schleipen & Erkens (S&E), is now believed to have withdrawn financial support.

Joint administrator Blair Nimmo of KPMG said he would continue to trade the business and hoped to sell it as a going concern.

Smith & McLaurin was bought by its management team from Rexam in March 1998, before being taken over by S&E in early 2000 (PrintWeek, 11 February 2000).

It later joined forces with S&E sister company Spectrum Adhesive Coaters, with both firms remaining at their own sites (PrintWeek, 7 April 2000).

Story by Gordon Carson