"We have the support of all the customers and the plan is to take it forward, perhaps even with further acquisitions," said spokesman for the new owners.

Cyclegrain is headed up by Gavin Bewley and Colin Keal. The deal, for an undisclosed sum was closed by joint administrators Brian Green and Paul Flint of KPMG on Wednesday 8 March, with an effective sale date of 6 March.

The firm will trade as Cyclegrain before reverting to Brand Packaging when the paperwork has been processed.

The deal for the Salford-based firm has amazed some in the industry, who questioned the long-term prospects of the operation.

The firm had a turnover of 8.7m (50% of which was from exports) and employed 92 staff prior to its collapse. The administrators made 47 staff redundant upon their appointment.

One industry source said: "This [deal] flies in the face of common sense really, with so much overcapacity in the flexible packaging market."

"With the closure of Amcor in Bristol that will in a sense be a massive help to us, because you are talking about a large amount of capacity being taken out of the market," said the spokesman.

Negotiations are ongoing at Amcor Colodense after the global packaging group announced its proposed closure earlier this month.

Brand Packaging

Founded: 1940s

1972 bought by Smurfit

1985 MBO led by all 115 staff

Administrator appointed: 17 February 2006

Sale concluded: 8 March

Customers include:
Wrigley, Unilever, Cussons