Following increasing anger in the industry at the rise of pre-pack administrations where a buyer, often one related to the business, is lined up prior to a company going into administration, the BPIF urged suppliers to boycott pre-packs as part of a range of initiatives.

Christian Knapp, managing director of KBA UK, said today that he backed the stance adopted by Heidelberg in support of the BPIF’s proposals but said the company would deal with pre-packs that had “shown good faith and sound business practices.”

However, he stressed that KBA would not deal with “unscrupulous operations” that use pre-packs to avoid debts, lay off staff and “get away with other dubious practices”.

Knapp said: “It is not very often that I agree with Heidelberg but in this case KBA is supportive of the line on pre-packs taken by both Heidelberg and the BPIF but with a more considered, individual approach.

“There are a number of reasons why pre-pack deals can be in the best interest of not only the company but the suppliers and customers. They allow a very speedy transition of a successful business so that the least harm is done to the operation. As a result the least jobs are lost, the continuity of commerce is uninterrupted and the existing customer base remains intact.”

The stance of KBA and Heidelberg adds weight to the growing revolt against pre-pack administrations, which have been accused of distorting the market and perpetuating over capacity in the industry.

Also, Knapp said that banks and large “monopolistic” print buyers had used the credit crunch as a justification to tighten credit and cut overdraft facilities and “force extended payment terms on printers”.

He called on the BPIF to name and shame those responsible for such actions.