business experts were today looking into the financial affairs of a Hampshire firm in a bid to claw back hundreds of thousands of pounds owed to scores of creditors.

Pressure Seal Systems (PSS), the manufacturer of pressure seal equipment, employed 55 people at the height of its success.

Based near Winchester and established 12 years ago, PSS reported a profit of £83,180 on a turnover of £1.7m in 2001.

It ran into difficulties following a £800,000 management buy-out in December 2002 by two Hampshire businessmen.

They were named in official papers as PSS directors Simon Weeks and Jonathan Millard, from Romsey and Bordon respectively.

The business was sold to them by founder Gavin Baldwin, who co-owned it with wife Marian.

PSS, part of the unaffected Pressure Seal Group, was placed into administration last September after liabilities were reported to have exceeded assets by £1.4m.

Upwards of £150,000 of stock belonging to PSS was bought up by competitor Paragon Group UK, based in Sunderland.

Some jobs were shed, with remaining staff employed by Paragon in sales and research and development.

However, that side of the business relocated to Castleford in Yorkshire, with further redundancies at PSS's base in New Alresford.

Business services specialist Tenon Recovery, based in Baker Street, London, is the PSS administrator.

The specialists were today due to meet Mr Baldwin and other creditors for a

situation update at Tenon's southern

regional office at Chandler's Ford, near Eastleigh.

Business South has a list of scores of firms across the south who are owed various sums from £12 to £115,000.

One of the leading creditors is Mr Baldwin, 56, who is owed an undisclosed amount from the sell-off.

Mr Baldwin, from Waltham Chase, near Bishop's Waltham, said: "It is a sad state of affairs, and I hope that there is a satisfactory solution for all the creditors."

British taxpayers are among the creditors - Winchester City Council is owed £18,361 and the Inland Revenue £28,653.

PSS made equipment that produced one-piece mailers, such as security envelopes.

Adam Brown, who owns Solent Bearings at Nursling, Southampton, is one such creditor. His firm supplied ball bearings and belt drives to PSS.

He said: "Company failure is always a business risk, but in this case we were left very disappointed and annoyed.

"We were left with a £20,000 loss, but still had to find £18,500 to pay our suppliers."

It is understood that Tenon Recovery was due to make a report to the Department of

Trade and Industry regarding PSS's financial affairs.