The situation at Redditch commercial printer KNP Group has deteriorated, with only 20 members of its 135-strong workforce remaining following a wave of redundancies by administrative receiver Ernst & Young (PrintWeek, 9 February).


It is understood that a major customer, believed to be London Transport, pulled its work from the company last week, while its two Mitsubishi five-colour 3H presses and Mitsubishi 3FR-8 perfecting press are standing idle.


A spokesman for Ernst & Young said the Mitsubishi presses were the subject of leasing agreements that Mitsubishi was unhappy to continue following KNPs move into administrative receivership.


The spokesman said that no new work was being taken on. The remaining staff are completing outstanding work and some jobs are being outsourced.


Earlier in the week the GPMU said it was considering taking legal advice after an initial 53 redundancies were announced.
Birmingham & West Midlands deputy branch secretary Albert Carr said the union was told that there would be redundancies, but was not consulted about who would leave or when.


Among the staff made redundant were chairman Chris Spriggs and directors Neal Mathias and Jonathan Abbott. However, director Stephen Ringrose has been retained in an advisory role.


The staff are very upset and feel let down by the management after an earlier rescue plan fell through due to the banks having first call on the assets, said Carr.


Ernst & Young remains hopeful that it can find a buyer, and several interested parties have viewed the site.


Story by Andy Scott