Administrators were appointed at three YM Group subsidiaries yesterday morning, which includes Scarborough printing firm Pindar, based at the Eastfield industrial estate.
All operations at the Scarborough site have ceased and all of the company's 274 staff have been sent home and made redundant without pay.
Mike Greene, Scarborough Council's Chief Executive, said: "The closure of Pindar, a company with a long and illustrious history of employment in Scarborough, is a huge blow for the town. It is devastating for all those who worked there and have sadly lost their jobs this week.
"In the coming days, weeks and months, our economic development team will work with partners to support those who have been made redundant by offering advice and connecting people to other organisations that will be able to help them through these difficult times."
Specialist corporate restructuring company FRP Advisory has been appointed at the three companies after an accelerated marketing process failed to secure a buyer in recent weeks.
Phil Pierce, partner at FRP Advisory, said: "Regrettably, the insolvency has led to redundancies at what we know will be an extremely difficult time. We will work with staff to access redundancy support."
Unite the Union said staff at the sites were given payslips but no pay and that administrators have confirmed 600 workers across the three companies will not be paid.
Unite the Union Regional Officer Darren Rushworth said: "YM Group has behaved disgracefully it repeatedly promised workers would be paid and even encouraged them to undertake overtime, in recent days."
"Unite is providing every assistance to the workforce who are devastated by the way in which they have been treated."
YM Group filed Notices of Intention to appoint administrators at the High Court on Friday last week for its subsidiaries, including Pindar in Eastfield.
Nobody was available for comment when The Scarborough News contacted YM Group.
Council Supports Workers
Staff affected by the closure of Pindar may now be eligible for free help, support, advice and training from Scarborough Council's Advantage Coast programme partners, listed below:
• Residents who are aged 25 and under and need English and/or maths support can contact Futureworks on 01723 449616 or [email protected]orksny.co.uk or message through Facebook at Futureworks NY Scarborough
• Residents who are a lone parent or carer can contact Lucy at The Opportunity Centre on 01723 373009 or email [email protected]
• Residents interested in working in the hospitality industry can call Bek Homer at Scarborough Tec on 01723 356141 or email [email protected]