Tue, 29 Apr 2014 | ADMINISTRATION
Printing company Service Point UK has entered administration as a pre-pack sale of the business is finalised.
Service Point operates out of 27 locations across the UK, providing a range of document management and printing services.
Administrators were called in after the company fell into financial trouble following its parent company, GPP Capital PLC, was itself placed in administration last year. The company achieved sales of £40.4 million in 2012, with a profit of £78,000. However, this was cancelled out by charges and write-offs connected to its parent company’s administration, resulting in a loss of £3.5 million.
Service Point UK was subsequently put up for sale in early 2014 but this could not be achieved because of liabilities attached to its pension scheme, which was £9.3 million in the 2012 accounts, PrintWeek reported yesterday (28 April). Service Point UK employs 500 staff and this issue with its pension scheme purportedly made any sale as a going concern highly unlikely.
Angela Swarbrick and Alan Michael Hudson of Ernst & Young were called in as administrators. In a joint statement they said: “The nature of the offers received and the quantum of the liabilities in the company meant that a sale process of Service Point UK was only achievable via an administration process.
"The business has already been widely marketed. The joint administrators have identified a purchaser for the trade and assets of the business and are working towards securing a sale within a short timeframe. This should minimise the time that the business is in administration and preserve value.”
Paragon Group has been named as the likely buyer of Service Point.
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