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Quebecor World has pulled the plug on its only UK operation and called in the administrators, raising fresh doubts over the Corby site’s future.

The decision, which comes after a deal with Roto Smeets parent company RSDB fell through in December and years of speculation over the future of the site, threatens almost 300 jobs at the plant.

In a statement, Quebecor World said: “Given the overcapacity in the UK printing industry, challenging market conditions and reduced demand for print in the UK market, the company does not believe the situation can be improved without further investment and significant restructuring.”

While Quebecor World’s European and Latin Ameri­can divisions were not included in the bankruptcy protection application made last week, the decision to put the Corby site into administration is widely viewed as a move to address its parent company’s balance sheet.

Tony Burke, Unite’s assistant general secretary, said: “For our members and their families, this is an unmitigated disaster caused by classic mismanagement at the very top of the company.

“We don’t blame the local management who have been kept in the dark as much as the workforce has. Corby has been cut adrift from what many now believe is a sinking ship. We hope that Corby’s customers will stay with the firm.”

The future of Corby has been uncertain since it lost a number of high-profile contracts, including a lucrative contract to print supplements for Associated Newspapers, which at the time represented 60% of the site’s turnover and resulted in 200 job losses. The contract losses hit Corby hard and the business lost £11.8m in 2006 following on from a £31m deficit the previous year.

However, the site received significant investment as part of its parent company’s retooling programme.

In its statement, the company said the investments were “designed to turn around this business but were unsuccessful”.

Charles Jarrold, managing director of Poole-based web-offset printer Southern­print, said: “While we all recognise that rationalisation is needed in our sector, it’s very tough on individuals affected. Refocusing a business that size in this market was always going to be a huge challenge.”

Ernst & Young has been appointed as administrator. Administrator Ian Best said he had already received expressions of interest and was confident of selling the business as a going concern.

“The business has significant assets including two freehold properties and modern plant and equipment,” he said. “These assets are worth more than £25m and are owned outright by the company.”

However, potential buyers may be put off by the firm’s pension deficit which in 2006 stood at £17m on total liabilities of £52m. Pension pay­­­­ments cost the company £853,000 that year with an extra £2.4m paid in interest on pension scheme liabilities.

An Ernst & Young spokesperson stressed that any buyer would not necessarily have to take on the pension liability. However, it would complicate any potential acquisition.

Nicholas Mockett of Europa Partners said: “One way to avoid the employee liabilities is to buy a relatively small part of the business, for example, certain fixed assets, probably in a liquidation. Perhaps the pension fund liability could be rolled into equity, which may result in the beneficiaries (em­­ployees) being given the keys.”

Directors at Corby were unavailable for comment.