The receiver PPB is hoping to sell the company as a going concern but with no new print equipment installed for at least five years and a tightening credit market it will be a far from easy sell.
Nexus has a turnover of around $10m, but has been struggling with cashflow and profitability for some time. It currently owes Bankwest around $5m, unsecured creditors including paper companies around $1.2m, and has an $800,000 outstanding tax liability.
Nexus was formed when century-old Gillingham Printers bought 28-year-old rival printer Van Gastel in October 2006, for an estimated $3.5m. Van Gastel's 40 staff, including Jack Van Gastel, merged with about 20 at Gillingham and relocated to Gillingham's Underdale site.
The new company Nexus sought to work in niche markets, producing book, packaging and catalogue printing and binding. However the newly merged company lost customers, and failed to achieve expectations.
Nexus is the second high profile company to fail this month, with security printer SEP Sprint also in receivership, its debts are around $3m, with $1.35m owed to paper merchants. Sadly there are likely to be one or two more printers following suit before winter ends.
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