A group of turnaround investors has been named as the preferred bidder for the Blipfoto photo sharing website under a deal which will keep it in operation.

Edinburgh-based Blipfoto went into liquidation recently with the loss of 11 jobs. FRP Advisory, appointed liquidator of the photo-sharing business, said the company had run into cash flow issues.

Metis Partners, the Glasgow-based advisory business, said it has brokered a deal to sell the Blipfoto site and related intellectual property to a group of investors that includes Jeffrey B. Hecktman, chief executive of the Hilco Global financial services group and Bobby Sager, a partner at Gordon Brothers.

Hilco and Gordon led an investor group that bought Polaroid in 2009.

Blipfoto entered a partnership with Polaroid in January when the website was renamed and launched as Polaroid Blipfoto.

Nat Baldwin, of Metis Partners, said: "The preferred bidder views Blipfoto as a strategic opportunity and has expressed excitement about the prospects for growing the business and nurturing existing users."

Mr Hecktman said: "The Blipfoto brand has created a genuine global community with users in over 175 countries who share the most important moments of their lives on a daily basis."

He added: "By leveraging this type of powerful social media tool with the direction and great success we are having with the Polaroid brand as a whole ... we believe this is as a fantastic addition to our current growth platform."

Blipfoto was founded by Joe Tree and Graham Maclachlan in 2006. The site has users in 170 countries who have shared about 3.5m photos.

Metis said the photo journals of users will be maintained as part of the proposed asset sale.