Newcastle-based CB went into administration with Tenon Recovery on 5 September principally due to prolonged downtime following a move into unfinished premises combined with flooding.

According to HAY director Duncan Aitchison, former commercial manager of CB, the company also had to absorb two bad debts.

The other two directors are former production manager Ivan Hansen and ex- warehouse and logistics manager David Young.

Former managing director Paul Laidler left the company at the end of September while it was in administration.

"[Laidler] had originally been kept on to try to sell the business, but didn't get far. And once our offer was on the table, he was no longer needed," said Aitchison.

The firm specialises in perfect binding, thread stitching and Wire-O binding. The assets and goodwill were purchased by HAY Binders, but liability rests with Tenon Recovery.

Administrator Steve Ross said: "A statement of affairs has not yet been prepared by the directors, but as the majority of assets were on finance agreements, unsecured creditors are unlikely to get a dividend."

Story by Rachel Barnes