Westman Printing has taken control of Reacon Australia following a vote by creditors held on Friday.
The creditors overwhelmingly voted in favour of the Deed of Company Arrangement (DOCA) that was proposed by Westman Printing co-owner Vik Gulati to acquire the Reacon Australia business.
Also on Friday MMW3 Degrees was placed in liquidation and all employees previously employed by MMW3 Degrees were transferred across to Reacon Australia as part of the DOCA and the restructuring process.
Westman owner Vik Gulati said he is very excited about the next stage of the Reacon Australia business.
“The good news is that all staff and their entitlements will protected under the DOCA. We are also paying all of the outstanding superannuation that was not paid by the previous owners – so all statutory liabilities are all up to date,” Gulati said.
“Everyone who had a job before the DOCA was passed is still employed. The two businesses – Westman and Reacon – will also be able to service customers more effectively driven by more production capacity.
“Reacon Australia will continue at its Regents Park to operate as usual and we will work with the employees in the business over the next few months to see where we can add value and obtain efficiencies.
“We have continued to trade and we have been heartened by the strong support we have continued to receive from our valued customers.
“The good news is that all transferring staff and their entitlements will protected under the DOCA. We will also be paying all of the transferring staff their outstanding superannuation that was not paid by the previous owners – so all statutory liabilities are all up to date,” Gulati said.
Everyone who remained employed upon entering the DOCA continues to be employed today. The two businesses – Westman and Reacon – will also be able to service customers more effectively driven by more production capacity.
“Reacon Australia will continue at its Regents Park to operate as usual and we will work with the employees in the business over the next few months to see where we can add value and obtain efficiencies.
“We have continued to trade and we have been heartened by the strong support we have continued to receive from our valued customers.”
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