Collapsed sheetfed printer Sydney Allen’s takeover by Mascot Printing has resulted in deep cuts to the 50 person workforce, ProPrint understands only 12 are still with the business.
A former Sydney Allen employee tells ProPrint only 12 staff members were selected to continue to work with the struggling business as Mascot took the reins, and the remaining 40 odd employees were told to leave immediately.
ProPrint understands some employees who were let go had been with the business for 30 years before being told to clean out their desks or lockers with little warning.
There is no indication if or when staff will be paid entitlements, however a creditors meeting has been scheduled for April 19 with secure creditors at the front of the queue.
Irate employees also say the printer had not been paying superannuation for as long as 12 months.
Staff say they were kept in the dark until the end about the company’s fate, and only found out about the administration when they received the ProPrint newsletter that broke the news last Friday.
Reasons as to why Sydney Allen fell into administration remain unclear, however an anonymous member of staff says the business ‘lost some work’ before collapsing.
Upon revealing its business licence agreement with Sydney Allen, Mascot Printing stated ‘key personnel and key suppliers’ would be retained, and says all existing customers will be serviced without interruption.
According to Mascot Printing the company is reviewing the possibility of buying what was a $14m business.
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