Nigel Morrison and Trevor O'Sullivan of Grant Thornton were appointed today as administrators to oversee the sale - the IP had been advising Bird since 9 March in a bid to find a buyer.. Bird confirmed that the company was in administration but could not comment further.
Earlier this week he had said he intended to buy the business back through Folio Print Finishing, a new firm started on 1 March, but stressed that the fate of Folio (Bristol) had been taken out of his hands.
Bird told PrintWeek that his company "should not be in this position right now", citing the removal of its invoice discounting facility, which was frozen in February despite the company coming out of its best year.
According to its most recent accounts, Folio made a pre-tax profit of £205,000 for the year to 31 August 2010, up from £62,000 in 2009 and £32,000 in 2008.
He said: "This has come as a complete shock. I am deeply embarrassed that I will be branded a pre-pack; I am deeply embarrassed that I have a failed business. The bank dropped a bomb in the centre of the business and within a week it was decimated.
"I thought I had ridden the storm. We were still servicing debt from previous years but the company was going well. I spent 21 years building a business and a reputation in an industry I am very passionate about and somebody in an ivory tower decided to kick the foundation away."
Folio’s insolvency is understood to have stemmed from cashflow difficulties resulting from slow-paying clients in early 2011 coupled with debt obligations, according to a statement from Grant Thornton, which came to a head when February’s salaries fell due.
Bird said: "When we went to them to take down February’s salary they said they were freezing the account, despite having close to £100,000 available. They said to produce over the weekend and we would see after that, we went back with another £20,000 in invoices but they still wouldn’t release the funds."
The deal ensures the continued employment of 40 staff.
RBS was unable to comment at the time of writing.
Folio (Bristol) sold to Folio Print Finishing as boss Bird slams bank action
Updated: Folio (Bristol) managing director Andy Bird has hit out at a perceived lack of support from his bank, understood to be RBS, as the company went into administration today (1 April) with Grant Thornton and was sold back to Folio Print Finishing.
