Walstead chairman Mark Scanlon has also revealed further details of events prior to Global MP’s fall into administration, when Walstead had attempted to mount a rescue bid for the stricken business.
"Naturally, we are extremely disappointed that we could not save the business and trade it from Bradford," said Scanlon, who was approached by Global MP chief executive Kevin Dunstall last month as the situation at his Bradford-based business began to unravel.
"I was contacted by Mr Dunstall on 11 June when he asked if Walstead would be interested in acquiring part or all of his company. We started due diligence, which identified a number of financial issues, and concluded that the business would only be viable if it was subject to an insolvency process and its cost base substantially reduced," Scanlon said.
"We made an offer to Baker Tilly, which was conditional on certain matters, including us being able to negotiate a change to the terms and conditions of Global MP’s employees – should we acquire the business – and the deal being completed by 25 June."
This was subsequently extended to 27 June, but Walstead was not permitted to complete its commercial review of the company.
"Unfortunately, our executives were prevented from meeting with the employees, which had been scheduled for 26 June," Scanlon stated.
"At that point we decided to withdraw our offer because we believed Global MP had lost too many customers and the financial cost of resuscitating the business would be uneconomical despite receiving strong support from Close Brothers Asset Finance, St Ives and other key creditors, together with a number of customers," he added.
On 30 June Walstead acquired some of the printing and mailing equipment owned by Close but previously used by Global. This includes two short-grain Manroland web presses and a 12-colour Speedmaster.
While the equipment is currently located in Bradford it is not yet clear whether it will remain there, or be relocated to Wyndeham’s existing sites. Scanlon said: "We are reviewing this at the moment."
