Paper merchants hit hard in $4m collapse of Hyde Park Press

A spokesman for liquidators Clifton Hall told ProPrint that the Adelaide firm had been taken off the market after failing to attract any credible bids.

Director Simon Miller said "business as usual" would continue until the end of the week and then Hyde Park would close for the Christmas break – and for all intents and purposes cease trading. An auction of its assets will be held on 12 February.

Miller said Hyde Park had collapsed with debts of about $4 million, including a secured debt of about $2.3 million to its bank, of which about two-thirds was leased finance.

Miller wouldn't be drawn on the value of Hyde Park's assets, but said unsecured creditors were unlikely to get any money back.

The creditors list shows paper merchants were burned for $585,000, with $237,000 owed to KW Doggett, $191,000 to BJ Ball and $157,000 to Spicers.

[Opinion: Do forensic checks before extending credit]

BJ Ball chief executive Craig Brown said: "We are insured. Hyde Park has been a reliable customer paying within terms for many years." 

Paperlinx declined to comment. Doggetts could not be reached for comment.

The creditors list also shows Hyde Park directors Barry Davis and Knowlton Coudrey lost a combined $450,000.

Hyde Park entered administration on 14 November. Davis said a week later that the 50-person operation wanted to "maintain [its award-winning] culture right to the end and go out with our heads high if no one buys us".

Davis told ProPrint today: "We've sent out an email informing people that we're closing and have had some very good testimonials from our customer base.

"There's also much sadness from within the printing community and from the suppliers as well.

"A lot of our employees have found employment already, which is very good. I would say at least 50% have work to go to, although not necessarily within the industry."

The February auction will include Hyde Park's three Heidelberg Speedmasters – a five-colour CD 74, five-colour 102 and two-colour 102. Binding, laminating and guillotining equipment will also go under the hammer.

[LinkedIn: Should the industry stop operating on credit?]

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