Dragons Paphitis and Meaden face losses

By Richard Tyler

The pair invested £100,000 for a 40pc stake in the Oldham firm, which ran its fleet of nine Volvo trucks on bio-diesel, after directors Jerry Mantalvanos and Paul Merker appeared on the Dragons' Den show in 2007.

It is understood that they invested a further £27,500 in September "at short notice" after receiving calls from the directors the company, billed on the series as "the UK's first 100pc eco friendly haulage company".

Tenon Recovery, the administrator, said in a statement that it was looking to sell the business and was in discussions with "a number of interested parties".

Jeremy Woodside, director at Tenon Recovery, said: "The UK's current economic situation has adversely impacted on the haulage sector and with a recent move to new premises also creating challenges, the directors of JPM Eco Logistics Limited have found themselves unable to sustain the company's progress.

"We are in talks with a number of interested parties, with a view to selling the business, and are hopeful of a positive outcome."

It is understood that the company had failed to pay its biofuel supplier, MPB Bioproducts, which had first issued a winding-up petition shortly before Christmas.