Goodman Baylis, the Friary Press and Borcombe SP, which incorporates BAS Printers, were bought out of administration at 21:30 yesterday evening by David Searle and Stephen Hardy.

Speculation has mounted over the past week concerning the status of MPI with many believing the group had gone into administration. However, PrintWeek can reveal that joint administrators Paul Clark and Geoff Bouchier of MCR were only officially appointed yesterday, just prior to the sale.

MPI said the group faced cash flow difficulties following cutbacks on credit insurance following the closure of Butler and Tanner which put the "healthy and profitable" companies in the current position facing closure or a sale. Butler and Tanner was subsequently bought out of administration by ex-management backed by publishing maverick Felix Dennis.

Dolan resigned as a director of MPI last Friday (5 September). Speaking in today's PrintWeek, he said that the decision was "a confidence issue" taken as the board would not inject more capital into the business.

He added: "I was prepared to invest in the business but when the board did not back me and also invest, I had no option but to stand down."

Dolan said that the group had lost "many millions of pounds" in the venture, with him standing to personally lose over £1.4m.

The new owners will retain the existing staff and management, and will continue to trade as normal. Dolan said it was necessary to put the group into administration to safeguard the jobs of the 250 staff employed across the group.

Searle will become chief executive of HS Printers. He said: "Both companies are profitable and at the top of their game in terms of sales, innovation and productivity.

"It is a great disappointment to the very capable management and staff that events elsewhere have hampered their recent progress and I believe that with myself and Steve Hardy as chief financial officer, we will strengthen the business and continue to develop what has already been started."

This is the first venture into print for Searle and Hardy who previously owned photofinishing company ColourCare International, which they subsequently turned around and sold to private equity firm Gresham Trust.

HS Printers (Romsey) has bought the business and assets of Borcombe SP and HS Printers (Worcester) the business and assets of Goodman Baylis Ltd and Friary Press Ltd.