Polestar UK Print and Polestar Stones-Wheatons went into administration yesterday afternoon, just four weeks after the pre-pack sale of the business to former owner Proventus Capital Partners.
Daily Mail publisher DMG Media was Polestar’s biggest client. It is understood to have given Polestar 90 days’ notice, precipitating the move into administration at the businesses.
Unite national officer Ian Tonks told PrintWeek: “It is deeply disappointing that it has come to this. We had heard that those supplements were possibly going to Germany. We are horrified at the prospect of sending UK work to Germany at the possible cost of jobs in the UK.
“We are hopeful this work will remain in the UK. If they send it abroad it would be devastating,” he added.
Neither DMG Media nor Germany's Bertelsmann Printing Group, the owner of pan-European gravure printer Prinovis which has been linked with the contract, have commented on the situation.
PrintWeek also understands that the Prinovis site in Liverpool could theoretically absorb the DMG Media work alongside its other newspaper supplement contracts.
Administrators from PricewaterhouseCoopers are continuing to trade the Polestar businesses while they look for a buyer or buyers for the sites.
Tonks said he was having an initial meeting with the administrators today (26 April).
“As long as they’re paying the wages our members will work as normal while they look for a buyer,” he stated. “My understanding is that Bicester wages are due this week and will be paid as usual, and the other sites have just been paid.”
Polestar employs around 1,500 staff.
Prinovis, Wyndeham Group owner Walstead Investments, and YM Group have all been mooted as potential buyers for parts of the Polestar business.
However, the contractual situation remains key to any rescue deal for the plants, and Polestar appears to have lost three of its five biggest customers already.
A senior print source said: “Who’s going to buy it without contracts in place?”
Polestar Applied Solutions and publisher River Group, which shared the same parent company, are not included in the administration.
