Omnia Books, the Glasgow-based publisher which was born out of publishing giant HarperCollins, has gone into receivership with the loss of almost 300 jobs.
The company was formerly the manufacturing division of HarperCollins and was previously known as Caledonian International. Two years ago the company was rescued in an £8m MBO by managing director Kevin McKenna. However, receivers from Pricewaterhousecoopers failed to find a buyer for the company. A number of companies showed interest in acquiring the business, but it was decided that the company did not have a sufficient customer base to survive long term. Problems began to arise at the firm when HarperCollins withdrew a substantial amount of business after a worldwide supplier review.
Speaking of the decision to cease trading with the loss of 280 jobs, CPI UK managing director Peter Palframan said: "The general view was that the company was strapped for cash, lacked investment and had a very high cost base."
The company was facing the loss of 40 per cent of its business after the HarperCollins decision to pull out.