The company makes packaging for DVDs and videos

Cosgrove Packaging in Sandycroft, Flintshire, announced on Friday that it was going into receivership.

Representatives claimed they had no choice but to close the business with immediate effect because of a lack of customers.

The company, which makes cases for DVDs and videos, moved to Deeside two years ago after being tempted to the area with a Welsh assembly grant of �390,000.

The grant was given on condition it created at least 60 jobs at the site - a criteria which they were able to meet.

Further liabilities

"It's very unfortunate but we were left with no other logical option than to close the facility, since with no order book the business would have only accumulated further liabilities," said joint receiver, David Whitehouse.

Alyn and Deeside MP Mark Tami said he had written to the company and the receivers - Manchester-based firm Kroll - to try and find out more.

"Employment is very buoyant in the region at the moment but we can't rest on our laurels," he added.

A spokesperson for Flintshire Council confirmed the authority had been informed of the situation and would be offering assistance to those staff affected.

Cosgrove Packaging re-located to north Wales from Manchester in October 2001.