The procedure is to be heard at the High Court of Justice on 17 November. According to Companies House, the division's last accounts were made up to 12 December 2002 and TS Photo Litho is a non-trading company.

Earlier this month, the Karran Group entered into a Creditors' Voluntary Agreement (CVA) after it had suffered cashflow problems for several years. It is understood that TS Photo Litho is being wound up due to non-payment of VAT.

According to Karran Group director Sue Whitmore the supervisors for the CVA, BDO Stoy Hayward, advised that TS Photo Litho should be brought into the CVA.

"The company has been dormant for seven years but has had administration problems. We are not concerned by this move," said Whitmore.

Whitmore added that she was still confident Karran would gain the support of the majority of creditors at the creditors' meeting next Thursday.

Despite the upheaval at the Guildford-based company, it has completed work on a incentive campaign for Norwich Union.

Story by Philip Chadwick