ProPrint understands that administrators have been locked in negotiations with representatives from PMG, which includes Victorian printer Ducor Australia, for weeks.
The company said late yesterday that it will acquire “all plant and equipment” at Wodonga-based Paragon, but could not guarantee that all 140 of Paragon’s staff would be retained.
“Print Media Group will do everything possible to help maintain the livelihood of the dedicated and experienced staff, many of whom have been with the company for many years,” the company said.
“However, the operation’s success will depend on the amount of support given by Paragon’s customer base. Our ability to re-employ and grow the number of staff will be dependent upon the level of support received from existing government and corporate customers that utilise the products manufactured by Paragon.”
The Australian Manufacturing Workers Union (AMWU), which was also involved in negotiations, said it is “hopeful” that up to 90 jobs will be retained at the company.
Moore Australasia managing director David Glavonjic told ProPrint that “around 20” of Paragon’s staff would be employed in his company’s warehousing operations.
Moore parent company Argus Solutions today announced it had formed a “strategic alliance” with PMG intended to “strengthen the company’s supplies, capabilities and services to customers”.
Glavonjic told ProPrint that because of Paragon’s “specialised” product offering with integrated forms printing and labelling, it was important for Moore to maintain its access to Paragon’s services.
“For us, it’s about making sure we can continue to deliver what customers expect from us,” he said.
Glavonjic added that the alliance will also see Moore “work more closely” with PMG and explore the option of expanding their respective service offerings.
Commenting on the sale of Paragon, Glavonjic said he was “delighted” to see Paragon and most of its employees survive the administration process and maintain its presence in the region.
“There aren’t many companies that go into administration and come out of it this well, so we think it’s a good new story,” he said.
PMG said it has acquired “an extensive range of printing presses and finishing equipment necessary to produce many specialty products” as part of its acquisition of Paragon.
It added that the purchase had been a “very complicated process given all the circumstances surrounding Paragon’s legal status”.
PMG is a privately-owned company employing 300 people across Australia and New Zealand. In addition to Ducor, the Group includes Wickliffe New Zealand.
Last week, Paragon creditors and workers voted to place the company in liquidation on the recommendation of administrators Hall Chadwick, though administrators described the move at the time as something of a formality while a sale was being sought.
Paragon entered voluntary administration on 5 March.
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter