At an employment tribunal Mr Bourhill was awarded a settlement of almost a quarter of a million pounds.

But the 49-year-old from Lytham, who claims he made Mr Oyston £20m by transforming Oyston Publishing to the point where it was sold for a huge profit, may not see a penny because the company has gone into liquidation.

A statement from the new firm, The Lancashire Magazine and Yorkshire Riding Magazine Ltd, said: "We are surprised, in the circumstances, that Peter Bourhill pursued his tribunal claim, given that he was fully aware that The Ridings Publishing Company Limited, the company he ran, was not in a position to meet any award."

A spokesman said: "Shareholder investments, bank borrowings and borrowings from associated companies totalled £750,000.

"This sum was in addition to the original shareholder investments and borrowings of £1,155,000.

"This has now all been lost and the company has had no alternative but to go into a voluntary winding up with a deficit on its balance sheet of approximately £750,000."

But now the picture is far rosier, employees claim.

Sales director, Joanne Geddes, said: "We are all excited about the future and I am delighted to say we are doing really well. "

David Stephenson, finance director, said "We are delighted we have saved the titles, preserved jobs and are just going from strength to strength."

During the tribunal, Mr Bour-hill said tensions over Mr Oyston's daughter Natalie's work at the business had created a rift between himself and the owner. He told the court he was asked to take a large salary reduction, bigger than that of company directors, which included Coronation Street's William Roache– aka Ken Barlow – and radio personality Stuart Hall and said he was angry when his salary went unpaid in December 2008.

Things came to a head, he claimed, when he called a meeting to inform shareholders he feared the firm was trading while insolvent due to a lack of cash in the company account.

Mr Bourhill is now looking into the possibility of further legal proceedings but told The Gazette his claim was more about justice than money.

Bosses from the company claimed during Mr Bourhill's period as chief executive, the firm made losses in excess of £800,000 and the company had no alternative but to go into a voluntary winding up with a deficit on its balance sheet of approximately £750,000.