The Guernsey firm, which became known as Howitt Offshore, underwent an MBO and was renamed Ink.

However, an article that appeared in the Guiton-owned Jersey Evening Post said that Guiton was owed 347,486 as the balance of the agreement from J Howitt & Sons for the sale and purchase of the entire issued share capital of Channel Print.

Howitt marketing manager Christine Watson said that as it was a matter of court proceedings, the firm had been advised to say nothing at this stage. But in the article, Howitt had denied that any balance was due, claiming that it suffered loss and damage after Guitons book printing business Guernsey Print closed two months after the agreement was signed.

It went on to claim that because the loss of that contract was a significant part of Channel Prints turnover, Guiton was in breach of the warranties set out in the agreement. This stated that so far as the vendor is aware each of the companys contracts, which are material to its business, are valid and binding.

Guiton claimed that Howitt had paid 785,400 on completion and a further 25,402 in July 2002 on a total amount of 1.158m. Howitt is reported to be counterclaiming for damages, interest and costs.

Story by Rachel Barnes