However, administrator Tenon Recovery has already found a buyer and a going-concern sale is being pursued.

Insolvency practitioner Duncan Swift was appointed to the £2.5m-turnover Essex business on Friday 14 January 2011.

The business continues to trade in a "limited, scaled-back capacity". None of Granite's 22 employees have been made redundant.

According to Tenon, the firm's purchase of Good News Press in February 2010 was the main reason for its downfall.

A spokesman said: "Ultimately, Good News Press failed and was placed into liquidation on 24 August 2010 resulting in Granite experiencing a bad debt of circa £120,000. This bad debt had a significant detrimental effect on the company’s cashflow.

"The company’s association with the failed business resulted in certain suppliers insisting on pro forma terms, which put further pressure on cash flow. Finally, the company experienced a drop-off in its sales towards the end of 2010."