Merchants including Robert Horne, Howard Smith and PaperCo have stressed it is their policy not to supply printers that go into administration only to re-emerge with the same directors under a different name.

David Allen, UK regional president for parent company Paperlinx, said phoenix companies can use their unfair advantage to lower market prices or take market share.

"We also regard bad debt as outstanding debt and wouldn't trade with people that don't pay what they owe," he said.
Sister companies Antalis and McNaughton also have a "strict policy regarding phoenix companies", and maintain that they do not knowingly trade with such businesses.

Tim Elliott, managing director of Elliot Baxter, said the issue is gathering momentum because people, including local printers, are rightly getting very frustrated.

"EBB is very strongly against supplying restart-up companies, and we will not go back in once a company has pre-packed or phoenixed," he said.

"The difficulty is that unless paper companies take a stance, it will continue."

Premier Paper Group managing director Graham Griffiths said his firm doesn't supply phoenix companies.

For more, see next week's PrintWeek.