Sydney printer Rotary Offset Press (ROP), which fell into insolvency last week, reportedly lost a sizeable contract to printing giant PMP before declaring bankruptcy.
ROP went into liquidation last week leaving behind a diminished client list and a workforce of around 50 employees. It was owned by Robert John Tarasov who took over the business from his father Stan, after starting it in 1960.
An anonymous member of staff told ProPrint the loss of a major job printing local search directories to PMP late last year, and the resignation of its sales representative ‘left a massive hole’ and contributed to its demise.
A spokesperson for PMP did not wish to comment on ROP’s insolvency, however says PMP does print local directories for Sensis.
ProPrint also understands in the last month some of ROP’s print jobs including several magazine runs were shifted to Blue Star Group’s heatset printing arm.
[Related: ROP and Halagraphics in liquidation]
Blue Star was also unable to comment on the failure of ROP however confirmed it has ‘picked up one or two jobs’ from the printer but ‘nothing too significant’.
The anonymous source says liquidators of ROP are ‘confident’ employee entitlements will be paid out of company assets, but how the company will source funds to cover debt owed to creditors remains up in the air.
A full creditors list has not yet been made available, but employees are expecting a notice of the first creditors meeting to be released soon.
The source says ROP staff members went into work last Friday morning and were made redundant on the spot, with the exception of several administration workers who stayed on to assist with the liquidation.
The assets are currently being handled by liquidators Cor Cordis Chartered Accountants who are running a campaign for the sale of ROP’s machinery and business operations, which includes sheetfed, web, finishing and pre-press equipment.
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