According to the trade association, suppliers should be encouraged to refuse credit facilities to pre-packs until the new owners have "at least demonstrated some willingness to pay off past debts".

The suggestion is one of four recommendations made to the Department for Business, Enterprise & Regulatory Reform (BERR) to assist in its examination of the sale process that sees a company placed into administration and immediately bought.

Other recommendations include the evaluation of the adverse consequences of the current enterprise legislation, consideration of the introduction of statutory measures if the new SIP 16 guidelines are "found wanting", and the establishment of a confidential list of businesses interested in buying a business to ensure that administrators can test the market effectively.

Andrew Brown, director of corporate affairs at the BPIF, said: "In an overcapacity industry such as print, pre-packs can often be the only way that an unprofitable business can be sold intact.

"However this is little comfort to other firms faced with a competitor who now has a clear trading advantage over them."

However, he stopped short of calling for an amendment to the 2002 Enterprise Act arguing that the legislation is crucial to stimulating entrepreneurial enterprise in the UK. Pre-packs are an "unfortunate side effect," he said.