May 22 2013 Latest news:
Melissa York, Reporter
Wednesday, September 26, 2012
Newspapers forced to find alternative printers after a Stratford business enters administration.
Newsfax Interntional Ltd, the UK’s leading contract newspaper printer with a branch called Newsfax (Bow) Ltd in Rick Roberts Way, entered administration yesterday afternoon.
BDO LLP partners have been called in as joint administrators to restructure the Stratford site where around 30 staff are based but Newsfax does not directly employ any staff so no redundancies are planned.
Martha Thompson, BDO business restructuring partner said: “Unfortunately the economic climate and difficult trading conditions in the printing sector have adversely affected the business.
“Together with the failure of the parent company Newsfax International Limited, it has been necessary to take steps to safeguard creditors and we are proactively reviewing all the options for the future of the company.
“Our immediate priority has been to ensure that business continues as usual over the coming weeks.
“The Joint Administrators have engaged a third party operator to ensure that newspaper production continues at the site. “Customers seeking further information should contact the Joint Administrators with any queries.”
During the London 2012 Games, Newsfax were forced to move some of their facilities to Rainham, Essex, where approximately 70 staff are based.
The Rainham branch also went into administration on September 25 with Allan Graham and Colin Haig from KPMG appointed joint administrators.
Allan Graham, restructuring partner at KPMG and joint administrator, said: “Unfortunately Newsfax International Limited has become a victim of the difficult environment faced by the printing industry, which faces over-capacity and tough pressure on pricing.
“The company has spent the past few months trying to find alternatives to save the business but these efforts have proved unsuccessful.
“The administrators are now reviewing the options for the business.”
Newsfax International Ltd has printed, transmitted, and distributed a number of newspapers since 1989 and administrators have confirmed most customers have now found alternative suppliers.