Print firm is put into liquidation

Sep 10 2008 by Karen Dent, The Journal

A PRINTING business which started trading less than 12 months ago has been put into liquidation after being battered by the credit crunch.

Peele Print (North) Ltd, a print broker based in Gateshead, has entered into a Creditors Voluntary – or insolvent – Liquidation after blaming low turnover and profit margins for its problems.

The company started trading on December 5 last year when it was based on the Swan Industrial Estate in Washington but moved to Gateshead in an effort to reduce overheads and costs. It had already been through one Creditors Voluntary Liquidation on December 19 last year, when the assets and goodwill of the company – then known as Peele Print (North East) – was bought by Peele Print (North).

The current company was supported financially by one its directors, who is its main creditor. The business ceased trading in August and made its two directors and two staff redundant.

Simon Lundy and Andrew Haslam, of Begbies Traynor rescue and recovery specialists in Newcastle were appointed as joint liquidators.

In addition to insufficient turnover and profits, the business blamed its high overheads and a lack of working capital for its problems.

Last month, the 40-year-old Reed Print and Design, which employed 148 people in Washington, went into liquidation as a result of problems being played out across the printing industry. Pulp prices have increased by almost a quarter in the last two years leading to soaring prices for paper.