Lynx Advances deal to acquire the lease and equipment at Washington Webs former premises has collapsed (PrintWeek, 23 February).
Both sides claim the venture has cost them money and three full-time staff have lost jobs with Lynx Advance.
Lynx Press director David Duff said the venture had cost Lynx around 50,000.
"The deal was never concluded and I felt that each time we got nearer to completion the goalposts kept being moved," said Duff. "I wonder if they ever wanted to do a deal."
June Lewis, a former employee of Lynx Advance and Washington Web, said staff had turned up at the premises on 12 April to find the doors locked.
"We have all been left high and dry and owed three weeks money as well as our P45s," she said.
Washington Envelopes director David McGuire, whose sister company, Worldwide Envelope Machinery, owns the lease to the premises, claimed Washington Envelopes was owed 13,000 for work carried out on behalf of Lynx Advance.
McGuire said a cheque was returned stamped "refer to drawer". "I am talking to solicitors," he said.
Duff said all outstanding monies to employees would be paid along with their P45s, but he would look carefully at the money outstanding to McGuire and may seek damages.
Duff said it was unfortunate that the staff affected had not been informed prior to the closure, but due to the breakdown of negotiations Lynx had walked away from the deal and the premises.
He did not rule out Lynx doing something in the North East at a later stage.
Story by Andy Scott
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