Fri, 28 Jun 2013 | ADMINISTRATION
Book manufacturer MPG Printgroup has been placed in the hands of joint administrators at BDO after a cashflow crisis.
MPG was the largest independent book and journal manufacturer in Britain, operating from sites in King’s Lynn, Bodmin and Bar Hill. It ceased to trade at the end of May, with a total of 267 staff made redundant.
Simon Girling, BDO business restructuring partner, commented on the proceedings to The Bookseller, “Regrettably it has not been possible for MPG Printgroup to avoid administration, nor to preserve the business as a going concern.
“Our objective as administrators will be to secure sales of its state of the art printing equipment, ideally in-situ, and to maximise recoveries for the company’s creditors.”
MPG had recently been subject to £4 million of investment to bring in new equipment for the business, including digital presses.
The failure is attributed to its rapid growth, an over-ambitious attempt to expand, and in so doing losing control of its cashflow. In particular, a major cost over-run at its new printing set up at the Cambridge site has been blamed for the calamity. Pressures included issues with the floor and equipment set up taking longer than anticipated.
Meanwhile customers have been searching for another printer to use. An unnamed print manager told Print Week, “There’s £24 million of work there. Who wants to pick it up? It may be better if the work goes around the industry at fair prices.”
Contact the administrators here
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