Rob Harding and Chris Farrington of Deloitte have been appointed to the company and are “immediately reviewing the options for the business.” Its business and assets are now up for sale.
In February newly-appointed managing director Jonathan Sankey said there was a three-year plan to take the business forward. At the time he said: “We are supporting the business as a family. Over the past 18 months we invested another £2m to support the changes.”
However, a source close to the company told PrintWeek that Artisan’s March trading figures had been “the worst on record” and this may have tipped the company over the edge.
In a statement, Deloitte’s Harding said: “Although Artisan enjoys an excellent reputation for customer service and high quality production, margin pressures and declining demand for printed media have contributed towards losses suffered by the business for a number of years. The directors concluded that the company was unable to continue to trade on this basis and resolved to place the company in to administration.”
PrintWeek also understands that Artisan has also lost most of its John Lewis contract, which has gone to York Mailing Group’s Pindar business.
“This is very sad, but it’s not a surprise,” said one web offset industry executive, echoing the views of many in the sector.
The adminstrators are “urgently seeking customers’ support” in order for the company to continue to trade “to secure the best outcome for creditors, employees and other stakeholders”.
Artisan Press also prints catalogues for major brands including M&S and Laura Ashley.
PrintWeek understands that the Leicester web offset printer had effectively been up for sale for some time, and that both Polestar and Wyndeham owner Walstead Investments have run the rule over the business.
As far back as 2013, York Mailing had been tipped as a potential buyer. It went on to acquire Lettershop Group.
In its last filed accounts, for the year to October 2013, Artisan posted operating losses of £4.6m on sales down 13% to £32.5m. A £2m impairment charge against the value of its fixed assets contributed to the loss. Auditors at BDO placed a going concern note on the accounts.
The company employs around 180 staff.
Artisan Press in Leicester is not connected to Artisan Print in Cheltenham, or to Artisan Books in Surrey.
Industry reaction
“Volumes in Artisan’s core markets are continuing to decline. It’s more and more difficult for smaller competitors in our sector to survive,” Paul Utting, chief executive, Wyndeham Group
“It’s very unfortunate whenever a business faces this situation and a very difficult and sad time for the employees. It's another indication of how difficult it has become in the print industry to maintain an adequate margin,” Peter Andreou, chief operating officer, Polestar
“It’s the day that we all feared. It doesn’t surprise me, but I heard it with a heavy heart,” former employee
“The bigger groups had all looked at it and walked away. Their print kit is old and outdated, but the bindery is huge with some new kit. There’ll be some travel firms absolutely pooping themselves about this,” web offset printer
“Argos and what’s going to happen to the bindery is the big question. They’ve got good kit in the bindery. There is insufficient perfect binding capacity in the UK as it is for doing those very big books, albeit there are not so many big books anymore,” catalogue expert
“I thought somehow they would make it work. But, even if you’ve got the best customers in the world, using nice paper, if there’s less print you’re stuffed. One of the last major independent printers going bust is a tragedy. This is grim,” paper supplier
“I’m very surprised they lasted as long as they did. Their customers have been extremely loyal,” web offset printer
“It just shows, there’s no money in conventional, traditional printing unless you are either world class at manufacturing, or you’re doing it in a differentiated way. Those caught in the middle will find it difficult,” Simon Biltcliffe, chief executive, Webmart
