The speed of Duncan Web Offsets closure has sent a shockwave through the industry.


Debenture holder GMAC Commercial Credit appointed receiver Simon Michaels from BDO Stoy Hayward on Thursday 31 May. By the weekend production had ceased and the firms 200 staff were served redundancy notices.


Michaels said: "In view of the losses and the level of debt over the companys financed assets, it is no longer possible for Duncan Web Offset to continue trading."


He added that the companys two sites at Tovil and Parkwood had to all intents and purposes been closed, and that a skeleton staff would remain to ensure an orderly wind-down.


"We are currently in the process of working with employees to recover as much monies owed to them as possible, under the Department of Employments redundancy payment scheme."


Michaels stressed that Duncan Holdings and Duncan Print & Packaging were unaffected by the closure.


GPMU Kent deputy branch secretary Denis Spencer was dismayed at the alacrity of the receivers decision and said that no consultation with employees came prior to the announcement.


He said all employees received a letter on Saturday morning (2 June) informing them of the closure and their redundancies. "There had been rumours about the company for quite some time, but we were extremely shocked and disappointed."


He added that the GPMU had received job offers from other firms for a small number of its members, and that the union would seek 90-day compensation over the redundancy settlement, due to the lack of consultation.


"We know it had days when it had no work, even though it had undercut competitors to such a level that it was unsustainable. It had borrowed a large amount and was in a deep financial pit. Really it beggars belief," said Spencer.


Sales in Duncans web offset business increased by 21% to 21m in 2000. However, operating profits fell by 14% to 889,000 due to 500,000 of exceptional charges related to keeping its two sites and start-up costs associated with the first of its two MAN Roland 48pp Lithomans.


During the last year the firm invested 9.2m. The first MAN Roland 48pp Lithoman was installed in April last year, with the second due to go in next April along with the firms Heidelberg M600, which was to be moved from Tovil.


Last month Duncan Web Offset chairman Bill Duncan admitted that the firm had borrowed 8m to invest in the new technology and bolster itself until 4m of capital from the sale of its Tovil site had been released (PrintWeek, 4 May).


At the time a bullish Duncan told PrintWeek: "We are in the middle of a big investment programme and wanted to pay off our debt very quickly. Despite this our sales grew and not everyone can say that, and our borrowings are still a lot lower than some I could mention. The market is difficult and everyone is expecting someone to go bust but it wont be us." He was uncontactable this week.


ICSM partner Steve Mepham said the receivers rapid closure of the company pointed to irrecoverable and deep-rooted problems.


"People in the trade cant believe it. Theyre speechless, it was so sudden. You have to feel sympathy for the 200 workers there they wouldnt have seen this coming a week ago."


IPC group manufacturing director Jasper Scott confirmed that it had already switched production of this weeks Cycling Weekly to Southernprint, which has picked up a total of nine titles after Duncans demise.


Southernprint managing director Chris Smith said: "I think some publishers were wary and had contingencies in place. We had some confirmations sent to us on Friday within hours."


Story by John Davies