The move, instigated by the group's bank HBOS, follows unsuccessful attempts to sell the businesses as going concerns.

It is understood that a deal with a potential buyer was close to conclusion before they were "frightened off" by its pension fund liabilities.

Openshaw Group's last-filed accounts, for the year to December 2002, show sales of just under 43m. A goodwill write-off of 16.2m contributed to a 23m loss. The business had a 2.8m pension deficit under FRS17.

Last summer Openshaw's owner, private equity group Rutland, restructured its holding in a debt for equity swap. At the same time the bank made additional funds available for the business.

Openshaw Group is a holding company for a number of distribution and manufacturing businesses, and it is not clear at this time how the other subsidiaries will be affected. It is understood that its overseas operations, which include thermography manufacturer Faust, will continue to trade.

Openshaw is a distributor for a number of major industry suppliers, including Agfa, Kodak Polychrome Graphics, Screen and Fuji.

Story by Barney Cox