Workers at the business have now received a letter from Chard stating what the situation is at the stricken group, which has been in limbo since last week.
The letter, seen by PrintWeek, is titled “Attendance on MPG Printgroup sites” and says:
“It is with regret, that I write to confirm MPG Printgroup cannot pay employees wages beyond the 31st May 2013 and effectively are in breach of contract after that date.
“You are not required to attend your place of work as from 1500 hours on Friday 31st May 2013. An administrator will be appointed by the banks next week, at this time, the administrator will contact staff moving forward concerning the process of administration.”
Workers at the group’s Bodmin and King’s Lynn facilities had already been sent home, whereas employees at Cambridge have been paid up until the end of the month so are still on site.
MPG’s two main banks for working capital and asset finance are Lloyds TSB and HSBC.
Last week representatives from Zolfo Cooper were on-site at the group, but a source close to the situation said that it now appeared likely that a different company would be used for the group’s administration.
Overrunning costs during the setup of its new Cambridge facility, created to take over the former Cambridge University Press (CUP) print operation, appear to have precipitated the group’s collapse.
Some employees at Cambridge are blaming the University for their current predicament.
One worker told PrintWeek: “It’s not a year since CUP stated that the agreement with MPG would take us former employees into retirement. Well it’s a very early one.”
Book and journal printer MPG posted sales of £19.4m in 2011, when it employed 238 staff.