A total of 132 staff at its Welsh site in Cwmbran, Gwent, and in Wolverhampton, West Midlands, have been made redundant at the £48m-turnover company.

KPMG, which was appointed on 4 January, has kept 24 staff to help wind down the company, but it is understood that these staff will move on once the business is closed.

Administrator Joff Pope said: "Unfortunately, following our assessment of the business since our appointment, we have established that it is no longer viable and therefore have no choice but to cease trading with immediate effect."

Sources close to the company's workforce told PrintWeek's sister title Packaging News that staff were informed of Western Corrugated's difficult position prior to Christmas and that the future following the festive period was uncertain.

It is also understood that paper suppliers stopped supplying the company with paper early in 2010.