York-based Sessions, which traded as Sessions of York, was placed into administration with P&A Partnership on 21 April 2010, almost a year after its owner had put the company up for sale.

PPP has stepped in to take on the machines and some stock of the labels division and will also take on eight staff, although managing director Mark Lapping said that there could be scope for further employment at the site.

It is understood that the rest of the label division's staff were made redundant by the administrator, however P&A Partnership's managing partner Jeremy Priestley had not responded to requests for information at the time of writing.

Lapping said: "The first step is to stabilise the business, then we will look to grow it. Sessions is a good name, it is in markets that we are not and we have been looking to make a strategic move into the non-food, pharma market for some time."

PPP will take on the lease for the part of the building that it will use. It is understood that buyers are lined up for the commercial and machinery departments and they will take on the remainder of the lease.

Paragon has a turnover of £135m and the Sessions facility will be its eighth in the UK. It employs around 950 staff. Sessions' label business has a turnover in the region of £4m.