The assets of the core print finishing arm are being bought by SPF managing director Darren Walker via Scorpio Print Finishers, a firm incorporated earlier this month.

The assets of the speciality business, which includes Z-Card, will be bought by SPF chief executive Ian Whitfield (pictured).

"Nothing's final until it is signed, but it looks like it will happen," said Whitfield.

Once the sales have completed, both operations will continue in SPF's existing Pudsey, Leeds factory in the short term. Both are seeking separate facilities in the Leeds area and plan to move out by the end of June.

According to SPF, the announcement comes against a background of "extremely challenging market conditions" and working capital was squeezed by "credit insurance restrictions" for a number of key customers.

"Having considered all the options, this [the split sale] was the only solution to ensure continuity," said Whitfield.

"I'm extremely sad because I think we've created a really good business, but the next best solution to keeping the company intact is to preserve as many of the jobs as possible."

Walker said he plans to invest in new kit once the move is complete.

"[The SPF core operation] has a good mix of business, we've got good trading volume with all the key print suppliers," he said.

Leicester-based Senator Print Finishers is unaffected by the SPF restructuring.