Michael Wu’s Production Printing Australia has signed a deal to buy fallen Melbourne digital printer On Demand, after a bidding war with rival PMI Imageworks. Wu, who is the sole director of PPA and of Melbourne digital and offset outfit Ability Press, says he will keep On Demand running as a going concern, with ‘the majority’ of the 76 staff to keep their jobs. PPA has bought all of the On Demand equipment and client list to keep the shop printing as normal.
On Demand, in Port Melbourne
The company, created two months ago, has been trading as On Demand under a licencing agreement since Bruce Peddelsden’s company entered liquidation in October with debts of $11m. Wu says he is still considering whether to change the name, or continue with the On Demand brand. He tells AP, “At this stage we are deciding. We have not made up our mind yet, the business already has a name and reputation.” PPA also includes former On Demand operations manager Con Maniatis, production manager Andrew Elia, and Tim Farrall formerly of Currie Group, PMI and FAB Equipment, as shareholders. The roll call of former managers likely gave PPA the edge over rival bidder PMI Imageworks in the race to acquire On Demand, as well as its licensing agreement that saw it effectively run the business since it hit liquidation, and a longstanding trading relationship with Ability Press. Ability Press handled much of On Demand’s outsourced offset work, for which it is owed $127,000, according to the creditors list. Liquidators at Bent & Cougle say there is unlikely to be anything left over for trade creditors after largest creditor the National Australia Bank, owed $2.4m in secured loans, is paid off. The 76 employees are owed just over $1m between them, a cost that will likely be borne by the taxpayer through the Fair Entitlement Guarantee scheme, and includes managing director Bruce Peddlesden and three members of his family. The list of 170 creditors includes companies like Avon Graphics, BPO Print, Coreprint, Discus On Demand, Dynamic Direct, Embassy Print, Gippsland Trade Printers, Industrial Printing Co, Labelmakers, Magnify Media, and Marsh Media all out of pocket. Suppliers were hit hard, with HP owed $2.9m, only $350,000 of which is secured. Fuji Xerox is owed $344,000; Canon $323,000; Currie Group $264,000; Spicers $150,000; Toll $126,000; and DHL Express $52,681. Eagle Financial Solutions is also owed $139,700; and accounting firm Paul V Rush $122,000.
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