Andrew Pear and Michael Solomons of London-based BM Advisory were appointed joint administrators on 5 May and both oversaw two separate transactions of the assets and goodwill of Four Graphics’ Warwick Site to Swanline Print Group and its Bermondsey site to newly formed Novum Graphics.
A statement from BM Advisory said: “Andrew Pear and Michael Solomons of BM Advisory LLP have overseen a sale of the two divisions of Four Graphics Limited following over-ambitious expansion plans last year, thereby preserving 24 jobs across the company’s two sites in Bermondsey and Warwick.”
The statement went on to say that BM was appointed after the business was hit by “cashflow difficulties”, which had resulted from a downturn in turnover during summer 2016 and delays to the opening of the Warwick site. The decision to open Warwick in 2016 was instituted to bring processes in-house as Four Graphics was previously outsourcing around £2.5m worth of work per year.
On the day it was appointed and following a “short marketing period”, BM completed the sale of the business and assets of Four Graphics’ Warwick and Bermondsey divisions as going concerns.
The statement added: “In the period leading up to the sale the administrators worked closely alongside the company, introducing appropriate legal and valuation experts to support the restructuring process.
“BM Advisory also engaged with Ultimate Finance who were instrumental in ensuring sufficient working capital was made available to cover salaries and wages in the period leading up to the pre-pack sales so as to protect the business in the critical stages of the process.”
Ultimate Invoice Finance lodged a charge with Four Graphics on 4 April, which was satisfied on 7 April.
Turnover for the company for the four months prior to its collapse was £1.17m, with an operating loss of £80,022.
Swanline Print has set up its Four Graphics division under a new banner, Four Create Print, with Swanline director Richard Towers listed as director but Michael Corless named by Swanline as its newly appointed managing director. It began trading on Monday (8 May).
Swanline chief executive Nick Kirby said he was pleased to have managed to retain all of Four Graphics’ 14 Warwick staff, who had been “exemplary” in their support while the deal was agreed.
He said that Four Graphics would further strengthen Swanline’s position with its three Durst roll-to-roll and flatbed digital machines.
Novum Graphics was incorporated on 15 March 2017 and is headed up by former Four Graphics director Emile Melki.
Melki, who was with Four Graphics for 13 years before leaving in March 2017, said he initially set up Novum as an outsourcing business but was informed of the opportunity to purchase Four Graphics’ Bermondsey operation at the end of last week.
He said: “It was quite a horrible thing for me to see the company go in that direction but as of last Friday I struck up a deal with the administrators and have bought the asset-base.”
Novum has taken on 10 Four Graphics staff, with three made redundant, and will now focus solely on wide-format print for the likes of museums and exhibitions. Former directors Nicholas Duncan and Daniel Waller have left the company.
Four Graphics’ Dubai operation, which was launched around 10 years ago, is outside of the administration process, according to BM.
Four Graphics’ administration follows a spate of London-headquartered printers that have gone bust over the past few months, including Wimbledon-based printers Intype Libra (acquired by Aquatint) and Purbrooks, Clicks Print and Face Creative Services, which was then acquired by Hobs Repro.
