Scottish print firm Montgomery Litho Group (MLG) has appointed provisional liquidators after a major customer loss forced the company into financial difficulty.
Blair Nimmo and Tony Friar of KPMG were appointed as joint provisional liquidators to MLG Glasgow and the company's Haddington businesses, which comprises MLG Edinburgh, Scotprint and Hunter and Foulis, on 11 January.
The Haddington plant, which opened in 2009 and operated as a financial printing arm, closed with immediate effect following the appointment, with 79 of its 88 staff being made redundant. The remaining nine will assist with the closure of the site on a short-term basis. Their future is yet to be decided.
Similarly at the Glasgow facility, 69 staff were cut. The remaining 76 workers will continue with the business as it trades on a smaller scale while the provisional liquidators search for a buyer.
It is understood that MLG's third facility in Perth, Scotland, closed before Christmas and was not dealt with by KPMG.
Nimmo said: "Montgomery Litho had been facing difficulties following trading losses and increasing cash flow pressures. The loss of a major customer together with a continuing reduction in order levels at a time of decling demand within the UK printing industry have adversely affected the company.
"It is regrettable, but unfortunately necessary, to have to close operations in Haddington and to implement redundancies both there and in Glasgow.
"However there remains an excellent opportunity to acquire a well known business with a strong customer base and we are hopeful that a buyer can be found."
In 2010, the £19m-turnover company won a place on the Scottish government’s £170m print contract which expired in April 2012.