Mehmet Arkin of insolvency firm Arkin & Co was appointed administrator of Enfield-based Swallowmax on 16 July. Swallowmax’s goodwill and unencumbered assets, which includes a range of printing kit, is in the process of being acquired by Printwize.
According to Printwize chair and owner Roger Wacey, five members of staff from Swallowmax, out of a total headcount of around 11 are due to move over to Witham-based Printwize during August. The staff moving over include Swallowmax boss Rob Beaton, who will work in sales.
Wacey told PrintWeek: “We have known about Swallowmax as a company for some time and I share a lot of similar principles with Rob, so I saw him as a good man to work with whose company has a good reputation and a strong client list.
“Their services bring in some specialist products that we could not do previously, while their B2 Komori press gives us extra options on top of our B1 Heidelberg and Mitsubishi systems.”
He added that one of the key drivers for the deal was the sudden departure of sales director Anton Polonijo and managing director Matthew Delaney from Printwize in January this year, which Wacey said heavily affected sales.
He hopes to use Swallowmax’s capabilities and clients to restore lost turnover to his own business.
Swallowmax had sales of around £1.4m at the time of the administrator's appointment, similar to Printwize. The five transferring staff will join Printwize’s team of 18 people at its 1,300sqm premises.
Wacey continued: “We basically lost a lot of turnover in January and this will replace it nicely. Under previous management, we did not generate much new business but since the exodus in January we have taken on something near 16 new clients.
“Reception of the deal for Swallowmax has been positive from all clients we have contacted so far and it is now looking like the company will be more profitable than it has been in three years.”
Printwize will take ownership of Swallowmax’s technology portfolio in the deal, which Wacey said cost a “substantial sum”.
Devices including two digital Xerox printers, large-format kit from Epson, HP and Graphtec, and a Mitsubishi Diamond 1000 five-colour-plus-coater press alongside a clutch of finishing kit, such as a Petratto gluer and a Horizon PUR binder, are all due to arrive on Friday (26 July). Swallowmax’s Komori Lithrone G29 H-UV five-colour press will arrive in August.
Wacey said his team would assess what kit it required before selling on anything it did not intend to make use of. Its own plant list is headlined by a B1 Heidelberg Speedmaster XL 106-5-LX and a B1 Mitsubishi Diamond 3000 five-colour press alongside digital, finishing and direct mail capabilities.
Arkin & Co declined to comment on the circumstances leading up to their appointment or the trading status of Swallowmax’s merchandising sister company SMX.
Swallowmax’s main site number now goes to voicemail.
