The announcement follows a strategic review of the Communic8 business and Virgin Group's print buying practices in the UK.

A statement issued by Communic8 and Virgin Projects chief executive David Hartley said the review had decided to consolidate the group print spend, including that of Communic8.

It will now look to build its offering through partnerships with non-Virgin firms. Virgin Management group procurement will handle the sourcing process.

An information document has already been sent out to select an initial list of suppliers. One potential procurement solution  involves all Communic8 staff transferring to alternative suppliers. Communic8 will continue to manage ongoing projects until the sourcing process is completed.

Communic8 employs more than 50 staff at three locations. It was set up as a subsidiary of Virgin Projects in 2001 and reported more than 15m of business in its first 12 months.

Communic8's client services director Megan Simpkins will leave this week.

Story by Andy Scott