Paragon Printing jobs hang in the balance as stand-down extended

Administrators Richard Albarran, Blair Pleash, and David Ross from Hall Chadwick said that they “have taken this step to enable further commercial negotiations to progress with the company’s principal customer, which resumed on Friday 19 March 2010”.

“Negotiations since that date have proved productive,” the administrators said.

“The administrators remain committed to reaching a positive resolution to these negotiations and to securing the long-term employment of as many of the company’s staff as possible.”

ProPrint confirmed last week that the customer in question is former Paragon owner Moore Business Solutions. Managing director David Glavonjic told ProPrint last week that his company had been “working with the administrators” to try and maintain Paragon as a going concern.

It is the second extension to the stand-down, which was first put in place last Wednesday morning 17 March, for what was intended to be a only 48 hours. That was extended last Friday until today, with the stand-down now set to continue until Thursday.

Meanwhile, administrators have also emphasised that “related entity” Moore Office, which is also in administration, has not been affected by the stand-down and continues to trade as administrators look to sell off the company.

“Negotiations are continuing with a number of parties in respect to a proposed sale,” administrators said in a statement.

“The administrators wish to confirm that no employees of Moore Office have been stood down, nor is there an intention to stand down any employee of Moore Office at this stage.”

Paragon Printing employs 145 staff, while Moore Office has a further 12 employees.

The two companies were subsidiaries of the Moore Group, along with print management division Moore Business Solutions, which earlier this year broke off and listed on the ASX as part of a “backdoor listing” via a merger with Argus Solutions.

Both companies entered administration earlier this month, with administrators revealing that roughly $10m is owed to creditors and another $10m owed to Paragon employees.

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