100 jobs axed as Blackburns falls to administrators

Direct mail house Blackburns DMS has gone into administration just over a year after the previous incarnation of the business went into administration.

Paul Flint and Brian Green, of KPMG, were appointed to the Leeds-based business today (26 February) and said they are seeking a sale of the business and assets.

A total of 100 of the company's 122 employees have been made redundant, with the remaining staff remaining to fulfil contracts.

Flint said: "The company has recently been exposed to a large debt caused by the insolvency of a significant customer which, in turn, has impacted heavily upon trading performance."

Created on 13 February 2009, Blackburns DMS employed around 150 staff when it took on the business and assets of failed business John Blackburns.

PrintWeek understands that Blackburns DMS was hit with a £100,000 debt when one of its customers went into administration last month.

According to Unite, the company has already made several redundancies recently. Regional officer Ray Jones said: "Some of our members have been made redundant in the past three weeks and haven't been paid redundancy [pay].

"Last week, I had a meeting with the company and it said it couldn't meet those commitments. We will support our members as best we can."

On 17 February 2009, KPMG was appointed as administrator for print and mailing business Blackburns. At the time, it employed 315 staff and had a turnover of £32m.

The direct mail arm was sold in a pre-pack deal to a management team a day later, with 151 staff moving across.

Around a month later, the print arm was closed after a buyer could not be found. In total, 147 employees were made redundant as a result of the administration.