Cockshott said: "The administration will continue for some time, until probably, the company goes into liquidation."

Wakefield-based DHM was placed into administration on 10 May (PrintWeek, 20 May), and the possibility of a Creditors Voluntary Arrangement (CVA) was originally mooted. "But when we put the figures together the CVA didn't stack up," said Cockshott. DHM's inability to offer warranties on new sales and existing deals was one of the major stumbling blocks.

"We've also had discussions with the two largest creditors, neither of which were supportive of a CVA," he added.

The sale of the company as a going concern has also proven to be unfeasible. Cockshott said: "There was a lot of publicity regarding the insolvency of DHM, especially with Drupa going on, and there was no interest expressed at all."

The company will continue to trade in an attempt to sell the remaining assets.

A further seven employees were made redundant on 24 May, leaving four staff to dispose of the outstanding machinery.