Nipson SAS, the France-based manufacturing arm of the company, had experienced "severe financial constraints" over the past two months resulting in a debt for equity swap which saw Creacorp, an investment company with ties to Xeikon manufacturer Punch Graphix take a 41.8% stake in the business.

Robert Cahill, finance director of Nipson, moved to reassure customers saying that there "should not be any immediate ramifications" for owners of Nipson kit.

Under French law, a company has more time and freedom to restructure than in the UK, making the administration process more like Chapter 11 in the US.

Cahill said that the initial period of restructuring fixed by the administrator is six months adding that Creacorp will ultimately decide on the direction of the restructuring and whether that will involve a sale of assets.

In a statement, released to the stock exchange last night, AIM-listed Nipson said: "The restructuring plan will include a sizable reduction in the number of employees, although the exact number is yet to be finalised."

Nipson's troubles reflect the increasing pressures faced by manufacturers, especially those manufacturing within the eurozone and exporting to the UK.

Last week Xerox announced that it was to cut 3,000 jobs worldwide as part of a cost cutting exercise.