Andrew Hilman, executive chairman of Butler & Tanner, said: “We’re not surprised by the announcement, and it can’t be bad for us. We think there would be opportunities for volume, but margins are another question.

“In terms of timing, if they hadn’t done it now, they would have had to wait until after Christmas.”

Meanwhile, union Unite, formerly Amicus, lashed out at the announcement.

It said it was “appalled” by the decision and criticised CPI for giving no prior warning to the announcement.

National officer Ann Field said the union would demand CPI examine alternatives.