Managing director Tim Vernon said the shock departure of Terry Cadby and James Clarke left Avalon's remaining directors with no option but to put the company into voluntary liquidation.

Cadby and Clarke's future plans are unconfirmed, but it is understood they are joining another print firm.

However, a rescue plan for the Avalon business was formulated last week, and with the help of backers Vernon was able to buy back the name, assets and goodwill of the business. Darren Briers, formerly of Flair Press, has returned to the UK from overseas and has taken a stake in the firm.

"We're not a phoenix, we're an eagle," said a relieved Vernon. "We have been heartened by the support we've had from customers and suppliers, and are quite humbled by it all."

It is hoped that the majority of the firm's 20 staff will be retained.