PrintWeek has obtained a copy of the creditors' report, following a meeting on 29 January.

The largest creditor to Vitesse Print is parent company Citymine – which was owed £620,000. Both companies hold Richard Pickin as director. A number of banks, finance companies and HMRC are owed around £1m combined.

Unsurprisingly, paper companies are the worst hit of the suppliers, with more than £200,000 owed to a number of merchants.

According to the report, the company struggled to make a profit in the past  five years, recording losses in 2004 and 2006 but a small profit each subsequent year.

However, turnover had increased over that time, reaching £4.8m on 31 July 2008 – with a £216,000 loss.

Pickin claimed that there were several reasons behind the company's liquidation. He said that a £200,000 drop in the company's invoice discounting, reduced credit limit and pressure to pay suppliers sooner, pressure from clients to pay later, as well as overcapacity in lithographic printing were the key reasons.

But a major factor appears to be the purchase of Axis Print in August 2007. Axis was bought for £500,000 but ended up costing a lot more.

The report states: "A senior employee of Axis Print was taken on and was subsequently dismissed for misconduct.

"Allegations were made that while at the company he had set up a parallel company in direct competition and was trading under the name of Axis Printing with existing customers."

The final straw for Vitesse came when the company lost a contract with English Heritage in early 2009. It had been manoeuvring funds in order to keep the contract, but eventually Vitesse was informed that the English Heritage had "lost faith in its ability to meet requirements".

In addition, the report alleges that certain individuals in the paper and printing trade began spreading rumours about the company's financial situation just before Christmas.

Pickin claims this led to suppliers demanding immediate payment for goods.