The company entered into a Company Voluntary Arrangement last October, with creditors to be paid 28p in the pound. However, a note was posted in the London Gazette yesterday stating that UHY had been appointed liquidators.

West Country Binders recorded a loss in two of the last three financial years, which, coupled with consolidation and rationalisation of the industry, culminated in "significant cashflow problems".

According to a letter from BDO's Simon Girling, who oversaw the CVA, a five-year proposal was put in place. As well as receiving 28p in the pound, creditors would have received a 50% share of any increase in the company's net profit "above the directors' estimates".

At the time, annual turnover had dropped from £1.8m in the 12 months to June 2008, to £1.4m by June 2010, turning an operating profit of £26,000 fell into a £117,000 loss.

The company had a £485,917 shortfall to its unsecured creditors, with a further £705,497 owed to secured creditors.

UHY were unavailable for comment at the time of writing.