The Melbourne bookbinding industry is struggling with bad debt, shrinking volumes and cashflow problems as another firm headed into voluntary administration yesterday.

Administrators at Hall Chadwick would not say how much Tullamarine trade binder BJ Bookbinding & Print Finishing owes its trade creditors – which number less than 25 – but say the fate of the company will likely be decided at a creditors meeting sometime before June 12.

Melbourne industry sources say staff numbers at the company, under director Brad Jacobs, have fallen from about 15 to a handful in the past few years, and noted that several print businesses in the Tullamarine area had closed up shop recently, significantly depleting its client base.

[Related: More companies in distress]

Marvel Bookbinding & Printfinishing director Wayne Eastaugh says times have been tough for Melbourne bookbinders recently and while his business is surviving well, others have not been so lucky.

“The printing industry in general has been struggling with bad debt recently here, especially last year,” he says.

“The bookbinding industry is not getting any bigger, so you have to transform your business to do what still works with what jobs are available.

“It’s harder for the smaller firms because they have to deal with tight pricing and small margins, and because they only offer a narrow product range it’s hard to add value.

“Also they often deal with smaller printers, and that tends to result in cashflow issues, and when those printers go down it’s a big client loss, a double-whammy.”

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