Registered as Ink on Paper (Scotland) Ltd, the company appointed administrators from FRP Advisory on 5 November, with both directors, James Kain and Edward O’Donnell, and two employees being made redundant. A pre-pack deal was signed the same day.
The business, established in 2007, specialised in litho printing, running a Komori B2 press as well as Xerox digital devices servicing major clients in the outdoor festival industry.
According to the administrator’s proposal report, the business had been loss-making in recent years and with the impact of the Covid-19 pandemic, especially on the Edinburgh Festival, the company experienced severe cashflow difficulties and was unable to keep up creditor payments.
The business was initially given a lifeline with the government’s Covid-19 financial business support, but with restrictions extended longer than expected, Ink on Paper’s client base was severely impacted. As such, the directors filed a notice of their intention to appoint Tom MacLennan and Chad Griffin of FRP Advisory on 27 October.
Due to cashflow problems the business could not continue trading, and insolvency and cessation of business was considered to be the only option.
According to the administrator’s report Ink on Paper owed £202,000 to lease companies including plant and equipment while owned assets amounted to £13,000. Preferential creditors would receive £12,000.
Trade creditors were owed £215,000 and the overall estimated deficiency was £475,000.
While it is estimated that secondary preferential creditors, which includes HMRC, may receive partial reimbursement, there is likely to be insufficient funds to cover any unsecured creditors.
After marketing the business to more than 400 parties, a deal for £10,000 was struck with Dundee-based Winter & Simpson to acquire the goodwill, customer records, design files and free access to contact all past and present customers of Ink on Paper and access to Ink on Paper’s print management system.
The deal also includes Ink on Paper’s trading name with branding and logo, the inkonpaper.co.uk website and email address, the right to use the existing telephone numbers and addresses, a small amount of kit from the premises and all stock for customers and work in progress.
Five directors are registered at Winter & Simpson, which is managed by Ken Winter and Stephen Simpson. Simpson, whose grandfather established Trendell Simpson – one half of the business that merged in 2008 to form Winter & Simpson – owns 100% of the share capital.
Printweek contacted all parties concerned but nobody was available for comment at the time of writing.
Ink on Paper (Scotland) Ltd is unconnected to Ink on Paper Ltd based in Berkshire.
