The wallpaper printer has a workforce of 52 and had suffered a severe downturn this year due to difficulties in the North American market and flooding at its Darwen factory. Zen's directors called in accountancy firm PKF and asset financiers Davenham Trade Finance to look for a buyer.

"This is a satisfactory conclusion to what has been a quick demise of an established business," said PKF partner Kerry Bailey. "A lot of jobs could have been lost and this would have had a dramatic impact on the local economy." The company, which was one of the largest wallcovering manufacturers, will continue to trade as Zen.

Last month it was hit by flooding causing 300,000 worth of damage. It started after debris was lodged in a culvert running underneath the factory. Although the facility was cleared of mud and water, only part of the factory was covered by insurance.

Story by Philip Chadwick