Receivers from PricewaterhouseCoopers failed to find a buyer for the business after interested parties decided there was "an insufficient customer base to make it a worthwhile proposition", according to joint receiver Iain Bennet.

The directors appointed PricewaterhouseCoopers at noon on 27 March after incurring on-going losses over the past two years. Omnias last available accounts, for the 56 weeks to 31 December 2000, show a pre-tax loss of 1.27m on sales of 12.1m.

The company was set to lose 40% of its sales after HarperCollins served notice that it was to withdraw much of its work.

"Its a tragic loss," said GPMU Scottish secretary David Munro. The union had more than 200 members among the plants 280-strong workforce.

HarperCollins said it had decided to "substantially reduce" its book volumes placed with Omnia after a worldwide supplier review. "The results confirmed Omnia could not match our current and future requirements," it said. "It is absolutely imperative we continue to source from suppliers who offer the best and most reliable services at the most competitive prices."

CPI UK managing director Peter Palframan said news of the closure was not unexpected. "The general view was that the company was strapped for cash, lacked investment, and had a very high cost base," he said.

The company was rescued in an 8m MBO led by managing director Kevin McKenna in April 2000 (PrintWeek, 7 April 2000).

It was previously known as Caledonian International, and was formerly the manufacturing division of HarperCollins.

Story by Andy Scott