Accountant Campbell Dallas was appointed as Merroc's receiver on 30 June, with around 50 staff being made redundant.

CCL Pachem will continue to trade from the Cumbernauld site, and has retained 15 of the 40 remaining staff at Merroc.

Campbell Dallas head of corporate recovery David Hunter said the firm's downfall had been due to an expansion into low margin business, which had proved to be loss making.

Merroc was formed in 2001, when the management team bought out the plant from Avery Dennison. It provides European paint manufacturers with pressure sensitive colour chip labels.

CCL Pachem's UK site at Rhyl also provides the paint industry with decorative labels for plastic containers.

Merroc had sales of approximately 5m (CAN$10m) in 2004.
CCL Pachem was formed in 2002, when packaging and labelling specialist CCL Industries announced a European joint venture with pressure sensitive mould labels company Pachem.