Joint administrators Nick Miller and Ian Robert of Kingston Smith were appointed by the Royal Bank of Scotland to the Park Royal, London based firm last Wednesday (1 February).

Sources close to the firm said it had been crippled by the legacy of its 40-year-old final salary pension scheme.

"It was also a case of operating in a very competitive sector so it couldn't generate the level of turnover required to create a net profit," said Miller.

In its last accounts it posted a turnover of 4.1m with a pre-tax loss of 586,000. In the accounts the firm's auditor drew attention to "uncertainty as to the payment of the pension liability".

Babs was majority owned by German-based Krug & Priester, which also owns finishing kit manufacturers Ideal and EBA, which Babs was sole UK agent for.

"We contacted the main shareholder to see if it had any interest in making an offer to purchase some or all of the business, it indicated that it wasn't prepared to do so," said Miller.

Babs' other UK agencies included Eurofold folders, Plockmatic collators and bookletmakers, PHL mailing machines and Uchida and Nagel paper drills.

The situation on the support of UK machines installed by Babs was unclear as PrintWeek went to press.

Miller is hopeful, however, that a UK firm will step into help users: "We're still looking to see if someone is interested in taking over the portfolio."

Babs agencies
Brand: Ideal
Sector: shredders, guillotines, folders and staplers

Brand: Plockmatic
Sector: collators, bookletmakers and mailing lines

Brand: Eurofold
Sector: folders

Brand: PHL
Sector: mailers

Brand: Uchida
Sector: paper drills

Brand: Nagel
Sector: paper drills