GPMU Leeds joint branch secretary Donald Place said that 25 of the firms 50 staff would be made redundant by the end of next month, but that the firm was trading on.
"They are also looking to downsize. They are on a very large site at the moment that used to have about 250 people working there, its far too big. They are now looking for a 1,000m2 factory," said Place.
Earthco Packaging, which changed its name from Waide Packaging in May last year, has had a judgement filed against it this month at Northampton County Court for 6,871.
As PrintWeek went to press director Gary Bull was unavailable for comment.
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