Profile marketing, a Melbourne direct mail provider, is the latest casualty in the industry’s continuing turbulence, pushed into administration by a tax and superannuation debt of at least $700,000.
The administrator is looking to sell the business as a going concern within weeks.
The company, co-owned by Andrew Benjamin, opted for voluntary administration on June 6 after the Australian Taxation Office began action against it.
Trade creditors are largely spared the pain with $125,000 owed between 22 companies and their accounts are relatively within terms.
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However, sources contacting ProPrint say the employees are concerned about the company being behind on their superannuation, which according to administrator Glenn Spooner at Cor Cordis is also part of the debt claimed by the ATO under the Superannuation Guarantee Act.
“We are in the process of confirming the quantum as the amount outstanding is likely to exceed the amount claimed by the ATO,” he says.
Spooner, who with Daniel Juratowitch is handling the company’s sale, says the business is in good shape and continuing to trade, but was hit with a huge debt it has been unable to pay off fast enough.
“Selling the business as a going concern is the best chance for clients and some 10 full time and 15 casual employees to continue on,” he says.
“We believe the underlying business is sound and a buyer should be able to turn a profit,” he says.
[Related: More companies in distress]
Spooner says the administration is supposed to last about a month but they would like to complete the sale as soon as possible, entertaining offers as early as this Wednesday.
He says interested buyers should contact Cor Cordis senior manager Nick Mann on 03 8320 5626.
Profile Marketing provides direct mail strategy, creative services, data management, call centre services, mailhouse production, and inventory management and distribution.
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