Print National in receivership

Multi-site $8m-turnover business Print National is in receivership, with administrator Deloitte Restructuring Partners hoping to sell it as a going concern.

Print National owner David James has just lost a multimillion dollar tax battle in the Supreme Court last year, and is required to front up $4.3m in tax, interest and penalties – though it has not been confirmed if this was a factor in the receivership.

The Print National business is one of seven related companies owned by James now in receivership. Industry sources say the ANZ bank has frozen the accounts. Trade creditors of Print National, which include many print finishing businesses, will face an uphill battle to reclaim their cash.

The whereabouts of David James are currently unknown.

Administrator McGrathNicol has confirmed two of the companies – Newcastle Liquor Wholesalers,  trading as Peter Doyle Cellars, and TLT Nominees, trading as Blue Star Beverages – owe $5.5m to about 250 unsecured creditors. The famous De Bortoli wines is thought to be owed a significant sum.

Other associated companies include Newcastle Liquor Wholesalers, James Australia Group, Rugama Trading and TLT Nominees. The winery, James Estate,  was located near to Polkobin in NSW’s Hunter Valley.

Print National has approximately 50 staff across its operations in Lisarow, Sydney and Newcastle, and offers prepress, digital and offset printing, binding, distribution and design services.

Johnny Sollitt, a senior manager at Deloitte, tells Australian Printer, “There have been a few expressions of interest. We are looking to see if we can find a buyer for the business as a going concern.

“It’s not about speed, it’s about getting the right deal. We will work our way through the expressions of interest and look at what the most appropriate transaction might be. It could take some time; there is no time limit.”

Neil Cussen, restructuring partner at Deloitte, says, “Since our appointment both the printing and winery operations have continued to operate as normal as we assess the businesses for potential sale. We understand this is unsettling time for creditors and employees and we have made it a priority to keep them fully informed of developments. All employees will continue to be paid in accordance with their employment conditions.

“We continue to work with the staff and suppliers to maintain operations at both businesses. It has been a really difficult period for the employees and we’d like to thank them for their professionalism in keeping both businesses operational while we seek out buyers.”

Acting general manager Don Langdon has reportedly returned early from an overseas trip to supervise the business.

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