ICSM Business News: A firm that survived four recessions has gone into administration after the MD left for a rival and 'took the customers with him'
Something clearly went wrong at printing company Essex-based Interact Marketing Services (trading as Printwize) before it went into administration this summer.
Print Week’s Jo Francis reported that in 2019 ‘the firm’s managing director and sales director left to work for a rival.’ She wrote: “According to the report from administrators Glyn Mummery and Julie Humphrey from FRP Advisory, this resulted in the loss of 60% of Printwize’s customer base, with turnover dropping from £225,000 per month to £80,000 per month.”
Ian Carrotte of ICSM said this practice is quite common but is little noticed as it is rare for such a high proportion of a business to migrate with a sales person.
He said: “Normally there is work in progress which continues at the old firm but it has been known for a manager to take a key account or two when they quit. Sometimes it is to set up on their own or to join a rival. The rival business sees the arrival as a guarantee a new member of staff will pay their way from the off. It’s usually internal disputes that trigger departures.”
Pre-pandemic, directors Roger and Christine Wacey had navigated a serious setback to the business in early 2019 when the firm’s managing director and sales director left to work for a rival.
Jo Francis added that the directors Roger and Christine Wacey wanted to retire but the collapse had seen the firm owe creditors £297,492; employees redundancy and notice pay was £158,823; the directors’ loan was £543,950 and there was a hire purchase shortfall of £47,150 with unsecured creditors unlikely to be paid in full.
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