By Harry Mottram: Losing a customer is bad enough when they go bust but if they are liquidated and the supplier is left with thousands of pounds of unpaid invoices it is even worse. Ian Carrotte of ICSM said there’s an added problem for suppliers as they have to replace the work and orders from the liquidated firm with new business and quickly fill a hole in their cash flow.
He said: “In some cases (and I’ve seen a few over the years) a large debt can sink a small firm or ensure it doesn’t make a profit as it struggles to survive. Hearing some of the recent news of insolvencies in the printing industry and allied trades is a cause for concern as the business has had to adapt to the rise of the internet in recent years. Then there’s interest rates, inflation, Brexit, a Labour Government increasing taxes, energy costs going through the roof – these are difficult times. At ICSM we always advise firms to put late payers on stop, cut costs, don’t leave things too late if you think a customer is in trouble and diversify if possible into a side but related business if you can.”
Slater Harrison
The print industry’s trade publication Print Week has published news of the demise of Slater Harrison. The outfit has been around since before the war and have been a fixture in the industry for decades along with its sister company Webmaster.
Writing for Print Week Jo Francis penned: “The Slater Harrison business was originally established in Bollington, Cheshire in 1929 and started off making laminated display boards used for handwritten window signs. It moved into its Lowerhouse Mills site in the 1930s. Slater Harrison’s paper and card product range included ColourMount, used in framing; the Centura range of papers featuring fluorescents with CenturaNeon (formerly DayGlo); and Educraft coloured paper and card used in nurseries and other educational settings. The firm also offered a range of contract services spanning sheeting, slitting, collating, laminating, embossing and coating. Parent company LS Dixon Group acquired Webmaster in 2000 to add self-adhesive products for the label and tape industries. Webmaster operated from the same site.”
Ian Carrotte of ICSM said they understand that LS Dixon Group’s accounts for 2023 had an operating loss of more than a third of a million pounds with an overall loss of one and a half million and a £2.5m hole in their pension scheme for the workforce of 80. All are likely to be made redundant. Jo Francis reported that Administrators Simon Jagger and Mark Supperstone from Evelyn Partners were appointed at Slater Harrison & Co Ltd and Webmaster Ltd on 22 January.
Full story at https://www.printweek.com/content/news/historic-paper-firm-ceases-trading
Unbound
Melina Spanoudi of The Bookseller has charted cashflow problems at the Crowdfunding publisher Unbound where suppliers, investors and freelancers have not been paid. She noted: “Suppliers, investors and freelancers have been left unpaid after Unbound failed to raise enough money in 2024, leading to cash flow issues. The company has now undergone an internal restructure, with some jobs made redundant and others given reduced time commitments. It has also ceased commissioning new titles. The Bookseller has heard from authors and others working with Unbound, who have been waiting to receive royalties and other payments owed to them by the company. They have voiced concerns about whether they will receive payments from the publisher, reporting that payment dates have been moved repeatedly.”
New CEO Archna Sharma (pictured – photo from The Bookseller) is reported to have said: “I want to express my deepest regret for the delay in royalty payments and the financial uncertainty that our authors, freelancers, suppliers and investors have endured. I want to assure everyone engaged with Unbound that we are working extremely hard to clear our debts and honour the trust you have placed in us.”
Ian Carrotte of ICSM said it was a very tricky situation for those who are owed money with everyone who has been left in the lurch hoping the new CEO can turn things around. He said: “ICSM understands that some writers have not been paid a penny since early last summer while some staff have been made redundant and other suppliers have put the publisher on stop since their accounts have not been settled.”
For more see https://www.thebookseller.com/news/exclusive-unbound-faces-financial-uncertainty-as-authors-wait-for-delayed-payments
Ancient House
The fall out from the collapse of Ancient House Press has continued with trade creditors owed over £2.5m in a report by Richard Stuart-Turner for trade publication Print Week. He reported that Lee De’ath and Tom Gardiner of Begbies Traynor (Central) in Colchester were appointed as joint liquidators for the firm in January with a deficit expected to be around £4.6m according to filings at Companies House.
Stuart-Turner wrote: “According to the Ipswich web and sheetfed printer’s statement of affairs, published in the last few days at Companies House, its assets subject to fixed charge included book debts with a value of £1.96m, estimated to realise £1.37m.”
Ian Carrotte of ICSM said he understood the taxman was owed £100,000 while the staff of 40 were left with their salaries partly unpaid. He said: “This is a very sad business – our contacts in the print trade were warning things were going wrong a while back. The firm have blamed a lack of orders and a down turn in trade. We have heard that unsecured creditors won’t get anything much while even preferential creditors will be disappointed as the assets won’t cover the shortfall.”
For more see https://www.printweek.com/content/news/ancient-house-press-shortfall-revealed
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ICSM CREDIT
For information on ICSM visit www.icsmcredit.com or call 0844 854 1850.
ICSM, The Exchange, Express Park, Bristol Road, Bridgwater, Somerset TA6 4RR. Tel: 0844 854 1850. www.icsmcredit.com. Ian.carrotte@icsmcredit.com