ICSM warn against getting in too deep with clients

As Henna Press goes bust Ian Carrott issues warning

Print Week have reported on the collapse of Henna Press in Watford – a situation created by FT Solutions failing to pay on time according the publication’s website.

Richard Stuart Turner reported for the trade publication that the: “Watford-based printer The Henna Press has gone into liquidation after being hit for six figures when its biggest client, FT Solutions, went into administration last month. Established in 2009 by managing director Thomas Duffy, the circa-£1m turnover company produced litho print for both commercial and trade customers.

“Glyn Mummery and Paul Atkinson of FRP Advisory were appointed joint liquidators of the business on 13 February. The liquidators said the business had faced a number of financial challenges in recent months that led to severe cashflow problems, ultimately forcing it into voluntary liquidation. All of its seven staff have been made redundant. FT Solutions’ recently filed statement of administrator's proposal shows that Henna Press was owed £167,029.”

It is a huge amount of cash to be owed even by a large print firm let alone by an outfit the size of Henna Press. Some in the industry have already pointed the finger at the accounts department of the company and implied a problem over good housekeeping and credit control. However one voice in the print business has said there is a wider problem affecting many companies and in particular ones that get into trouble.

ICSM Credit’s Ian Carrott of the print credit intelligence group says there is sometimes a tendency for the managers and owners of firms to ignore the advice of their own accounts department. He comments: “Some managing directors are sales orientated and allow their focus to be on orders rather than payment in the short term. It means they may over rule the advice of the accounts people and point at the amount of work that is coming their way from a client. That’s fine as long as the client is paying on time. If a client fails to pay on the agreed date and it is a huge part of the turnover then is could be the end.”

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