The team looking to acquire the company is led by Kevin Sarney, who has been with the Butler and Tanner Group for 12 years.

He is supported by fellow directors, Dave Mills and Jeremy Snell, and also former managing director Peter Maunder.

Sarney said: "Our confidence in the potential of Butler and Tanner grows by the day. The company made good profits for the 15 years to 2003.

"Then, like so many other UK printers, the business suffered a dramatic downturn due to a high cost base, a pension deficit and not least, overseas competition."

He added that the decline of sterling, combined with rapidly rising prices in Europe, meant the UK market had become more competitive.

Sarney added: "We are working behind the scenes to get things together. We believe there is a need for a quality colour book printer in the UK."

Mike Dolan, chief executive of Butler and Tanner, had dismissed an earlier bid in the run-up to the closure of the company last month, believing that it had "not demonstrated an intention or ability to cover the unsecured creditors or to fund an ongoing operation".

Sarney declined to comment on whether he was behind this bid but said the team was currently seeking investors to support the move.

Target Corporate Finance has been recruited to advise the team on a deal, and Matt Eves, who is heading up the Target team, is confident that an attractive proposal can be reached.

"All members of the team have extensive experience in the sector and between them have significant knowledge of the company and the industry as a whole. Their plan represents a great opportunity to save the business," he said.

"We are currently in discussions with potential funders and are looking to put together a rescue package. We are in contact with the administrators and will be meeting with unions and representatives of the workforce later this week to discuss the team's plans."