The Chelmsford printer went into administrative receivership on 21 March on the instructions of its banker, Royal Bank of Scotland, after suffering "significant trading losses".

"The company was trading profitably, but the historic debt was too significant," Child, now managing director of Montrose Press, said.

A spokesman for administrative receivers RSM Robson Rhodes, said he was hopeful that "there will be a realisation of debt for secured creditors, but that the situation may not be the same for unsecured creditors".

Childs said that since he took over at the company nine months ago from former managing director Mike Herbert, the business had been turned around.

The firms last filed accounts, for the year to 31 March 2001, show a pre-tax loss of 1.2m on sales of 4.8m. The company also had an equity gearing of 75.5% as a percentage of capital employed.

The new MBO team also includes directors Scott Terriss, Nigel Grant and Dean Hobday.

Montrose Press will re-employ 60 former Clifford Thames staff, and only six jobs were lost following the appointment of RSM Robson Rhodes.

Changes at Clifford Thames

February 2000 Clifford Thames Group leaves Hutton after 38 years, relocating to new premises outside Chelmsford

January 2001 Clifford Thames Printing demerges from the Clifford Thames Group in an MBO, and buys the business and assets of Norwich-based Child Reprographics

March 2002 Clifford Thames Printing goes into administrative receivership. An MBO team purchases business and assets, forming Montrose Press

Story by Andy Scott