Speciality screen printer Pacedene has gone into voluntary administration. There have also been an unspecified number of redundancies at the business.
Control of the Enfield-based company was effectively relinquished by its board of directors which includes Howard Diamond, Suzi Diamond and David Elson, on July 26.
Hacker Young partner Ladislav Hornan, the joint administrator of the company, said: "The directors of Pacedene applied at the High Court for an administration application." Hornan added that he believed the company would continue despite the current turbulent times: "Its early days but we wouldnt agree to take the company on unless we believed that it had a very good chance of survival."
Pacedene managing director Howard Diamond said that he was unable to discuss details of the administration at the present time.
Industry sources suggest that the root of Pacedenes current problems is a disputed six-figure sum for work carried out for one of the companys blue chip clients.
In a statement to one of the companys creditors, the administrator confirmed that all orders issued by Pacedene from July 26 would be met.
Hacker Young Partner Andrew Andronikou said: "Weve been in touch with clients about the situation. Customers have given us support - 100%."
Story by John Davies