Two plastic packaging companies employing about 200 staff have gone into administration.
Gelpack Industrial Limited and Gelpack Excelsior Limited in Hereford had recently suffered "difficult" trading conditions, administrators KPMG said.
The majority of staff have been sent home, but there had been no redundancies, they said.
KPMG said it was reviewing options, including trading in the short term, whilst seeking a buyer.
It said it had retained a "skeleton staff" to help fulfil outstanding orders.
KPMG partner and joint administrator Mark Orton said: "Gelpack is a leading name within the packaging industry, with customers including well-known names from across the food and drink, pharmaceutical and bedding sectors.
"However, both companies have recently suffered difficult trading conditions that have led to an additional funding requirement, which has prompted them to enter into administration."
KPMG said it would encourage anybody who may be interested in buying the businesses to contact the joint administrators as soon as possible.