ICSM on more pre-packs: Covid-hit firms have woken up to an economic slump, rising interest rates and double digit inflation
Two print industry outfits have been sold in pre-packs – the controversial process of retaining insolvent businesses as going concerns through buy-outs or repurposing in order to keep staff.
Writing in Print Week Hannah Jordan reported on Wembley-based Abacus Print: “The six-staff print business, run by husband and wife team Alison and Jonathan Luck, took a CBILS loan in 2020 and further loans from the owners during 2021 to try to keep the business afloat. It also cut costs by moving into a larger, shared premises with another printer, but its rising debts were ultimately insurmountable, and the business filed a notice of intention to appoint administrators on 3 March, with Richard Rones of Thornton Rones administrators appointed on 22 March.”
Ian Carrotte of ICSM Business Support said: “It is understandable that printing companies have got into trouble during Covid and now the shrinking of the economy and they then try to trade their way out of problems. CBILs loans and other forms of loans have to be repaid so if it is possible to resist taking on debt then cost cutting is a better alternative as loading up on loans can end in insolvency.”
ICSM understands that that unsecured creditors are owed around £240,000 which may not be paid due to the size of the debts with around 2p in the £1 available.
Ian Carrotte welcomed the news the existing staff should be retained according to Print Week.
The trade publication also reported on the graphic design and printing platemaker RR Flexo has also gone through the pre-pack process with Eric Walls and Wayne Harrison handling the process. ICSM again noted that unsecured creditors will get very little of what they are owed. Povoas Packaging are believed to the firm taking over RR Flexo.
Liquidation on Meseyside
WirralCo have gone bust owing around one million pounds in debts. The firm has been closed and is being liquidated by administrators Jason Mark Elliott and Craig Johns of Cowgill Holloway Business Recovery in Bolton. The staff of 21 have been made redundant and unsecured creditors are owed nearly £70,000 with outstanding loans of around £243,000 including a CBILs loan of £137,000 according to Print Week.
Ian Carrotte of ICSM said there was a pattern across industry of firms who took out loans to see them through the lockdowns 'have woken up to not a booming economy in recovery but a slump with high inflation and rising interest rates'.
Closures and purchase
In another sign of the times The Daily Mail will close its newspaper printing site at Hillsea, Portsmouth along with sitesat Dinnington in South Yorkshire, and Carn in Northern Ireland.
However Print Week's Jo francis has reported that Paragon Group has completed its acquisition of The Lettershop Group following a protracted process due to recent events at parent YM Group. Finally some good news.
About ICSM Credit
ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel - while at the moment there's a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach - ask for details from Paul.
For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.
To keep up to date subscribe to the FREE ICSM Credit Newsletter to hear all the latest insolvency news and to see who has gone out of business click on the orange panel on the top left of the home page of the website www.icsmcredit.com or send an email to Ian.carrotte@icsmcredit.com
For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk