Direct mailing firm, Prospect Mailing Services in Bradford has been placed into administration.
Around 30 staff have already lost their jobs, with uncertainty for the remaining 180 employees, unless a buyer is found.
Parent company, Cogent B2B, had previously told local paper, Telegraph & Argus, that PMS was a “distressed business” and that they were hoping to merge it with St Ives Direct in Bradford – which it bought a few weeks ago for £8m.
Last month, there were protests by staff at PMS who said that more than 100 employees hadn’t been paid on time. This, the company blamed on changes to its accounting system and that payments were being processed manually.
The future of the company and staff lies in the hands of insolvency practitioners SFP Group in London, with staff fearing they have just 2 weeks to save the firm.
“The Joint Administrators confirm the placing of PMS into Administration on November 11, 2013, following financial pressure within an increasingly competitive market place,” read a statement from SFP Group.
“A review of the viability of the business is presently being carried out and the Joint Administrators anticipate providing an expanded statement during the course of next week, once further information is available to them.”
Prospect Mailing Services was founded in 1971 and at its peak was mailing 3m letters a week.