The Essex-based company, which has three plants in Harlow, Mitcham and Shoeburyness, has been the subject of widespread speculation after employees were sent home at the beginning of the month.

It has now emerged that insolvency practitioner Harrisons is expected to be appointed to Blue Printing Group.

Insolvency administrator Robert Forster told PrintWeek that Harrisons had been in talks with Blue for a number of weeks.

He said: "We have been asked to be appointed today (20 February). Depending on when the paperwork goes through, we will be appointed later today or tomorrow."

Despite not being paid by Blue since December, employees have not been able to claim redundancy or owed wages from the government because the company has not entered formal insolvency proceedings. The appointment will finally enable them to do this.

Blue Printing Group managing director Alan Mitchell did not respond to requests for information.