Ailec went into administrative receivership two weeks ago

Ailec Mailing Services, which is based at the Victoria Business Park in Roche, is closing one of its departments.

The company, which was founded in 1982 and also has a branch in Plymouth, wraps magazines and free gifts for magazines, and employs 290 people.

The company went into administrative receivership two weeks ago and two of its main customers have cancelled their orders, the receivers said.

The 130 jobs are to go in the company's hand finishing department.

Another department which mainly uses an automated wrapping system will carry on working.

The receivers said more jobs could be lost at the company's other site at Langage Industrial Estate, just outside Plymouth.