Deloitte’s report on the company has been leaked to the Sunday Times, which quoted the review as saying that Polestar would run out of cash over Christmas unless it can refinance in some way, and that Polestar would need to find an investor willing to inject £18m into the business for it to keep going in its current form.
It listed the possible options as a debt-for-equity swap, a fast-track sale, a pre-pack or administration. It said a solvent restructuring was the preferred solution.
The group has moved to reassure customers in the wake of the reports. In an email to be sent to clients, and seen by PrintWeek, Polestar sales director David Gray stated: “The facts are as follows: Polestar is refinancing to bridge the Goss claim for the three new web offset presses in Polestar Sheffield. We have reforecast our cashflow and profit forecasts over the next three years to take account of the volume falls expected. We have adjusted out debt servicing and equity dividends. As such we are refinancing with a number of different options and Deloitte are advising the best long-term options. Completion will be in three weeks. No further job losses or closures are planned in the next year or so.”
PrintWeek understands the so-called “Goss claim” has also been mentioned to key suppliers to the business.
However, a Goss spokesman told PrintWeek that the press manufacturer “was not aware of any claim”.
“We have a good relationship with Polestar and that continues. We are not aware of any claim,” he said.
In October, Polestar also hosted a Goss delegation of European web offset printers at its Sheffield facility.
Polestar's major customers include Time Inc UK, Telegraph Media Group, Associated Newspapers, Guardian Media Group, Immediate Media and Hearst Magazines UK.
An informed source said: “If Polestar did fall over large swathes of the publishing industry would be unable to publish. Print buyers are going to be asked by their FDs what the contingency is here.”
Polestar chief executive Barry Hibbert said he had "nothing more to add" to what he had already told PrintWeek last week. "As the saying goes: don’t believe everything you read in the papers," he said.
