John Endersby, of Elwell, Watchorn & Saxton, has been appointed as insolvency practitioner to help the directors handle the company affairs towards liquidation.

WHP Newbury's closure comes just four weeks after the company was sold by its former managing director Peter Arnel in an MBO deal.

Don Woodward, a partner at management advisory group Precision One, which arranged the MBO, said: "Following the conclusion of an external audit, it became clear the new MBO team and its backers could not depend upon the company ledgers.

"Funding offers were immediately frozen, which left the business with insufficient cash with which to operate."

He added that it was with regret that the directors felt they had no alternative but to cease operations at the £5.5m-turnover business on 18 March.

"For avoidance of doubt, the company will not be resurrected in any phoenix scenario," said Woodward.

One worker at the site told PrintWeek on Friday that he understood the company had not been able to support itself financially.

"The directors took over with the promise that they'd finance the business. However, payments haven't been made and none of the directors are here," he said.

In February, the business was sold for an undisclosed sum to existing director Alan Whitelaw and consultant Mike Godfrey.

Whitelaw, sales director at the business, was unable to comment.

Companies House reports that the appointment of secretary Denise Arnel was terminated on 12 March, while Godfrey was appointed as director on 16 March.