The proposal gained a 93% approval. According to a source, the majority of creditors had already voted in favour of accepting the CVA at an earlier creditors' meeting on 7 October, which was adjourned without a resolution.

A letter to creditors from the administrator seen by PrintWeek, dated 14 October, stated that the adjournment was intended to allow further time for discussions with the company's landlords. One landlord had already come to an agreement over a rent reduction, but negotiations were ongoing with two others at that time.

According to the letter, the remaining two landlords "appeared receptive" to reaching some sort of agreement on reduced space and associated costs.

It said: "With discussions ongoing it is difficult to ascertain whether there is scope for increased contributions. If an agreement is reached with the remaining two landlords, this should enable the company to make additional contributions to enable the estimated dividend of 44p [in the pound for unsecured creditors] to be maintained.

"Recognising the uncertainty of the position regarding the remaining two premises, the directors agreed to a modification proposed by two creditors that the estimated 44p dividend is amended to be a minimum 44p to creditors. This will hopefully provide creditors with some comfort that the return will be maintained in light of any increase in the landlords' claims."

The East London finisher is offering to pay 44p in the pound to unsecured creditors over five years, which will equate to around £1m of a £2.3m unsecured debt being paid back. According to the company’s legal representatives: "Secured creditors of £2.7m are [to be] paid in full."