Stephen Anstice, CEO of the country’s second biggest print business IPMG is considering a move to boycott suppliers who do business with a revived debt-free Geon.
Anstice says, “IPMG is considering instituting a policy where we will not support any suppliers who decide to do business with Geon should it re-emerge under the ownership of KKR and Allegro leaving creditors unpaid.”
While individual companies are free to do what they want any organised proposed boycott of suppliers could run foul of the Trade Practices Act.
Anstice expressed his anger at the possibility of Geon emerging from receivership debt free. He says, “We cannot conceive how the reported plan of KKR and Allegro to emerge as the new owners of Geon can be allowed without all creditors being paid, and have called on the PIA to explore what action can be taken to protect the suppliers and staff of Geon.
“Many suppliers will be facing bankruptcy as the impact of this receivership is felt throughout the industry and its knock on effects could lead to serious consequences for many other suppliers, staff and customers.”
Geon was put into receivership by its new owners KKR and Allegro on Wednesday afternoon, and by Thursday they had bid to buy the company back through their KKRM vehicle. This effectively shovels much of Geon’s debt onto its suppliers, who include dozens, possibly hundreds of smaller printers, as well as paper merchants, consumables suppliers and equipment suppliers.
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