All jobs have actually been conserved at a Wirral-based card printing company that has actually been purchased out of administration in a pre-pack offer after running into financial problems following the loss of two significant contracts. Administrators stated that the relocation would make sure the connection of the business, which has been trading for more than 25 years.
Print Search Chester Ltd, which trades as PSC Systems, went into administration on 22 December 2015, with Paul Stanley and Jason Greenhalgh of Begbies Traynor designated joint administrators.
Founded in 1988, the business products print services, plastic payment cards and direct mailing services to a national consumer base that includes banks, local authorities, housing associations, merchants and insurers from a base at Lumina Business Park in Bromborough.
The plastic cards that it offers consist of payment cards for council tax and lease, subscription cards, reward and commitment store cards, travel cards, phone cards, health cards, identity cards, security and picture ID cards, radio-frequency recognition cards, and chip-and-PIN clever cards.
According to a report prepared for lenders, Begbies stated the company had built strong relationships with its customers but experienced a series of obstacles recently. These included the loss of a major agreement to be the sole carrier of payment cards for Alliance & Leicester in 2009 resulting in an instant reduction in turnover of 50 to 60 per cent, the loss of an undefined significant contract in early 2015 to a rival getting rid of a large percentage of its turnover, and unanticipated costs in relation to energies at its properties.
The directors subsequently gotten in touch with Begbies after concluding that the company was not able to pay its debts as and when they fell due.
The report reveals that business and possessions of Print Search Chester Ltd were obtained in a pre-pack offer for a total factor to consider of 70,000 on the day of Begbies’ visit. The purchaser was Blackpoll-based PSC Mailing Ltd. Business House records show that the sole shareholder and director of PSC Mailing Ltd is Aaron Corbett, who is also listed as a shareholder and director in Print Search Chester Ltd
The report stated: “It was clear that if the sale was not finished then business would have ceased, and the impressive orders would not have finished. The realization of the debtors would have been considerably minimized. With a sale of the company’s business and possessions it has allowed a continuation of business which will boost the collection of the trade debtors.”
In the alternative circumstance of liquidation, it is considered that substantial claims would have been made by debtors, the impressive orders would not have been finished, and most significantly it would have led to the loss of nine jobs, which both the company and joint administrators aspired to avoid.”
The deal safeguards the tasks of all nine staff, allows secured creditor the Royal Bank of Scotland to get a dividend, avoids preferential claims and guarantees the continuity of the business. Elizabeth Maly, of PSC Systems, informed Insider that she and fellow director John Cunningham are remaining with the company, although they will not be shareholders.
She added: “Essentially everything will remain the same even though the shareholding is altering. We’ll continue to do the exact same company as before, but by the same token we’ll also look to develop the business because the printing sector is changing. We’ll look at presenting things like hybrid mailing and technological developments.”
There’s a truly good business here and an excellent customer base which our team believe in. Nobody would have wished to go through exactly what we’ve done but there has actually been an extremely positive result here.”