Warwick Printing Company ceased trading on 5 August and entered members voluntary liquidation on 8 August, with Andrew Kelsall and Lee Green from Larking Gowen appointed as joint liquidators.

The firm, based in Leamington Spa, was established in 1946 and has been owned by the Young family for 36 years. 

Brothers Paul and Alan Young took over the business after the death of their father John in late 2018.

In a statement, the brothers told Printweek that the company had incurred “significant trading losses over recent years”.

“Being unable to stem the losses, the directors have taken advice and taken the difficult decision to cease trading from 5 August 2022 to avoid further losses,” the Youngs stated.

“Based upon information available to the directors the company is solvent, in that its assets will exceed its liabilities and costs, but clearly those assets now need to be disposed of.”

This has resulted in an unusual situation for the firm’s employees, understood to number around 45 and including some long-serving staff. 

Brothers Paul (left) and Alan Young took over the running of the business in 2018

A source close to the situation said: “Employees were previously told it was a solvent administration and that all wages, redundancy, commission and lieu days would be paid in full on 21 August.”

However, at a meeting with Larking Gowen at the factory last week, the source said that employees were told that Warwick Printing Company would not in fact be making the payments as envisaged. 

“Everyone went mad. The directors denied all knowledge. We have minutes of meetings where Alan Young said we would definitely be paid by the company on 21 August,” the source stated. 

“Some of us are tens of thousands of pounds out of pocket. This has broken people. We’ve also got suppliers phoning us up saying they were promised they’d be paid too.”

Printweek asked Alan and Paul Young to clarify the situation regarding staff payments, and they responded: “Staff will be paid wages and redundancy pay, hopefully during August via the Redundancy Payments Service.”

The Youngs said the business would then reimburse the RPS once its assets were sold.

Printweek also asked Larking Gowen to explain the process. 

Kensall commented: “The company is solvent as determined by the requirements to enter into a members voluntary liquidation (solvent liquidation). That in basic terms means that it has sufficient assets to discharge all liabilities and costs in full.

“It is correct that the company does not currently have the liquid funds to pay the not insignificant redundancy and wages claims and hence this will initially be funded by the Redundancy Payments Service. This will then in turn be repaid in full as and when company assets are disposed of.”

He said he was disappointed if employees were “concerned and or confused”. 

“I attended at the company premises on Friday 5 August and spoke with all employees present and took time to explain the position. In addition all employees had a written notice and fact sheet explaining the position.”

Kensall said the exact payment date would depend upon the employees making the required online applications and then the RPS processing the claims, “but we are hopeful this can be during the month”.

He also confirmed that payments made by the RPS would be capped at the statutory limit, which is currently £571 per week. 

“If any employees are owed in excess of this amount then the balance will be paid from company funds together with statutory interest,” Kensall added. 

“It is not unusual for a members voluntary liquidation to have outstanding liabilities at the commencement of the liquidation and these are subsequently discharged from assets realisation, etc. Hence there is provision for the payment of statutory interest (currently 8%) on liabilities settled in the liquidation.”

The company’s 1,420sqm freehold factory unit is up for sale via EHB Reeves Commercial for £1.75m. 

Its plant and equipment is being sold by Eddisons. The firm ran two B1 Heidelberg Speedmaster presses: an eight-colour SM 102CX and a four-colour CX 102 LED model that was the first of its kind in the UK when it was installed in 2019.

In-house finishing included two Muller Martini stitchers, a Primera 110 and six station Presto with inline stacker, while its digital printing setup included Ricoh and Canon devices. 

Warwick Printing Company files abbreviated accounts. In the most recent filing, to 31 March 2021, the firm had shareholders’ funds of just under £2m.

The company printed magazines for independent publishers – according to its website more than 3,000 titles a year – and a range of general commercial print products. Clients included Warwickshire County Council, Warwickshire Police, the NHS, and landscaping association BALI. 

On 13 July Alan Young set up a new company, Fosse Cottage Media. He is understood to be planning to offer pre-press and magazine production services.