A spokeswoman for the company said it was not in receivership, liquidation or administration, but was working through a difficult situation.

The company was to issue a statement on its current state on 2 March, but failed to do so, amid reports that its Laird Paper subsidiary in Nottingham had been closed. Phone calls to Laird Paper remained unanswered.

York & Ford was part of the 900m European merchanting group IGEPA, but the group withdrew its support at the end of last year.

Its latest accounts to 31 March 2003 show a pre-tax loss of 860,000 against a turnover in excess of 32m.