The Sheffield-based company is in talks with insolvency practitioner O’Hara & Co, which is expected to be named as liquidator at a meeting of creditors on Tuesday 14 July.

About 20 staff were made redundant on Monday, with the few remaining finishing off work in progress.

According to case administrator Dominic Riordan, the company suffered because of the increase in online advertising.

He said: "Speaking to the staff, [the closure] was something that they expected. There had been a drop in work because of the increase in email adverts over mailshots. That was one of the main reasons, although it has been hit by the current financial climate."

Riordan added that a lot of the company's assets were leased and financed, but an agent had been in to investigate the market value of equipment.

He said: "With the landlord's permission we would like to have an auction on the site, but that has not been confirmed yet."