According to the administrator's report dated 29 March, Celinco has not paid either the £95,000 purchase price for the company's assets or money owed to suppliers as part of the deal.

In the report, administrator Graham Wolloff of Elwell Watchorn & Saxton said: "Celinco has defaulted on the terms of the agreement; specifically that the majority of the payments due to administration suppliers and retention of title claimants have not been made and the consideration for the asset sale has not been paid."

Wolloff is now pursuing both Celinco and Engraving Services (ESL) for the monies and has issued Statutory Demands to both. ESL is owned by Michael Bennet who has previously denied any link with Piggott Black Bear, however, the report states that ESL was the guarantor in the Asset Sale Agreement between the administrator and Celinco.

Piggott was acquired by the print consortium on 18 September, after the B1 magazine printer fell into administration on 1 September. An initial consideration of £17,638 should have been paid on completion, followed by £22,632 on 30 September and a total of £55,000 split into three consecutive mon-thly instalments thereafter.

According to Wolloff, the business was sold to Celinco on the understanding that it would register for VAT and carry on trading the business, but this was not done. Instead, he alleged that the individuals behind the deal incorporated four new companies with names similar to Piggott Black Bear, with Celinco remaining dormant.

The creditor's letter lists George Georgiou as the person that initiated the purchase on behalf of Celinco. According to the letter, Georgiou is an accountant at London-based Alexanders International (Audit). It said Georgiou first viewed the premises along with Bennett and Johanna Hiney. Hiney also become a director of Piggott Black Bear Holdings and Piggott Black Bear Printing.

As PrintWeek went to press, Hiney was unavailable for comment, and Georgiou and Bennet could not be contacted.