SPS filed for insolvency on 1 April and appointed a temporary insolvency administrator, Jens Hamdorf of Treugarant AG.

However Hamdorf said he believes a sale of the business will go through in the next month.

The appointment of a temporary insolvency administrator in Germany is similar to Chapter 11 in the US, with the company protected from its creditors but able to continue trading until a solution is found.

Hamdorf is currently talking to potential buyers; if one cannot be found he will sell off the assets of the business.

However, he said that the 50-staff company had enough orders for the next couple of months and that he was optimistic of finding a buyer.

He added: "SPS is a good and well known company in the printing industry and the current problems are not caused by bad products but by the worldwide financial crisis.

"At the moment we are talking to a couple of potential buyers, but it is too early for a prediction. I think in three or four weeks we shall know more."

SPS's UK distributor HG Kippax declined to comment.