Carrs Products, the new venture, has dropped Signal Plus, as has been predicted, and will focus on its digital range Ximage. Stock had already been expanded in SRA2, SRA3 and bespoke sizes.

Managing director Keith Lewis said the increased pressure on prices and decline in value of its major product, Signal Plus, which represented 50% of the company's turnover had pushed the firm into administration.

Lewis said all the customers and stockists of Ximage had remained loyal to the product, which he said had "still proved to be one of the best in its area".

The firm hopes to expand on the ink-jet front, and Lewis said a formula and product had already been developed for this market. The company operates from the same site in Solihull as Carrs Paper and employs 62 staff, around 50% of its previous level when it was Carrs Paper.

The business was sold for 591,000 on 19 May to a team of four, which included Lewis, who was managing director of Carrs Paper and former chairman Douglas Rogers

The other two shareholders and directors are listed as Brian Davies and Leighton Carnell.

One of the last remaining UK-owned carbonless paper operations, Carrs Paper went into administration on 10 May, with 73 jobs being lost. See Carbonless paper maker goes under.

Story by Andy Scott