Direct marketing company succumbs to cash flow crisis

A direct mailing company that operated from sites in Warrington and Stockport has entered administration.

Character DPM Group has been put into administration, along with its subsidiary Character Mailing Services, although the joint administrators are keen and confident that the company can be sold as a going concern.

Brian Green and Paul Flint, of financial services firm KPMG, said that 44 jobs were immediately lost upon entering administration, but that they were hopeful that many of the 138 people employed by the company would see their jobs saved.

Mr Flint said the company had suffered in the face of competition from abroad and an increase in the outsourcing of printing jobs.

"In addition to those challenges caused by the economic downturn, recent years have seen many companies in the printing sector battling hard in the face of over-capacity, pricing pressures and the effect of increased competition from low-cost overseas players," he said.

"In Character's case, this led the company to experience severe cashflow difficulties."

Character DPM is based in Aintree, in Liverpool, and also operates sites in Bootle and Warrington. Twenty staff were laid off at Warrington and 24 more were shed at the mailing services operation in Stockport.

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