Allan Graham and Colin Haig from KPMG were appointed joint administrators to Newsfax International Limited in Rainham, Essex yesterday evening (25 September).
Allan Graham, restructuring partner at KPMG and joint administrator said: "Unfortunately Newsfax International Limited has become a victim of the difficult environment faced by the printing industry, which faces over-capacity and tough pressure on pricing.
"The company has spent the past few months trying to find alternatives to save the business but these efforts have proved unsuccessful. The administrators are now reviewing the options for the business."
Separately, BDO has been appointed to 30-staff Newsfax (Bow) Limited, which operates out of a site in Stratford. PrintWeek understands the FT has taken over this plant.
Meanwhile, Newsfax customer Metro is understood to have moved its printing to Newsprinters' Broxbourne plant.
According to one industry source, the business had put together a team of "well known people" appearing at the firm over the last few months with the promise of a new management team to be installed, however this never materialised.
One concerned customer contacted PrintWeek at the time of writing asking for clarification about the company after they were unable to contact Newsfax.
According to the directors report in the the Newsfax International accounts for the year to 31 March 2011, the board was in discussion with its principal banks about finance arrangements following the breach of certain banking covenants and was "optimistic" of reaching an agreement.
"The market for new business remains very challenging, with margins on existing business being squeezed as publishers feel the continuing effects of the recession and as national press capacity becomes available on the contract market," the directors' statement added.
"Trading in the current year remains challenging and it will be necessary to reduce all costs further and to minimise downtime on the presses to remain competitive."
The group made a bottom line profit of £1.2m for the year on turnover of £24.8m; gross profit was £6.9m and operating profit was £3.6m.
More to follow…
