The Frome-based colour book and commercial printer has released a statement saying its new financial arrangements would "release funds for future investment, a reduction in borrowings, as well as providing working capital and funding for further cost reductions".

Responding to an article in the Western Daily Press on 31 August, which claimed the company was in "crisis talks", B&T said it had put a recommendation to its workers, who are paid on average 30,000-plus per annum, that they should accept reduced terms of 40 per week.

The Amicus union had agreed to the new terms but they were "narrowly rejected" by staff in a ballot.

Around 60% of the company's 37m turnover comes from the colour books market, which is vulnerable to low-cost Far Eastern competition.

As a result B&T claimed prices in this market had declined by up to 25% over the past five years.

To offset declining book prices B&T said it had "cut costs significantly" and forged a strong presence in the corporate, digital and commercial print markets.

Story by Lauretta Roberts