A former staff member of high profile Adelaide print shop Five Star Print says the business shut its doors due to mounting debt reaching $4m.

Five Star ceased operation in May after it was placed into voluntary administration, with Andre Strazdins and Maris Rudaks from BRI Ferrier appointed administrators.

At the first creditors meeting on June 2 Australian Printer understands the agenda was to determine if administrators could strike a deal with creditors to allow Five Star to continue trading.  

A second creditors meeting has been scheduled for August 30 at the BRI Ferrier offices in Adelaide.

However, a former employee has told Australian Printer there is no hope the business will open again and it will likely fall into liquidation next week.

The source says, “I received a text message last night saying Five Star is probably going to liquidate next Tuesday.

“They are in debt for $4m, with one supplier carrying half of that debt, they are owed around $2m.”

The source also alleges there are unpaid super payments, and also accuses the company of denying staff entitlements, such as payment for working overtime and Sunday wage rates.

Australian Printer contacted former owner Carolyn Cagney for comment, but did not receive a response by deadline.

Five Star’s digital division had trouble with a digital press it bought a couple of years ago which the company says caused it millions of dollars in lost business and forced its division Graf-X into administration.

The source denies the machine contributed to the company’s current woes, “It was a difficult machine, that is true, but the company was not paying employee entitlements and they were in debt with the tax department because they were not paying company tax, it was just a mess to be honest.” 

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