Administrators hope to find buyer for print firm

Jan 7 2009 by Peter McCusker, The Journal

A 37-YEAR-OLD printing company which lost a £1m contract late last year – and counted Woolworths as one its customers – has gone into administration with a quarter of its 85-strong workforce being made redundant.

Directors of Newcastle based Nor-Screen, which had an annual turnover of around £10m, called in the administrators after falling into the red and seeing an anticipated £1m contract with Dixon/Currys fail to materialise.

The reorganisation services team at Deloitte in Newcastle is continuing to trade the business as a going concern, and are today due to show two potential buyers round the company’s premises on the New York Industrial Estate, North Tyneside.

Twenty-two of the company’s workforce have been made redundant with joint administrators Ian Brown and Neil Matthews saying there are contracts to fulfil until the end of this month.

Mr Brown said: “This is a well-established company which has been run profitably, but it has started to struggle in the last 12 months.

“The majority of its customers are retailers and in the autumn it expected to win a £1m printing contract for Currys/Dixons, but the customer ended up not placing the order.

“It also counted Woolworths as one of its customers. This is going to be a difficult period for retailers and all sectors which rely on discretionary spending.

“This is worse than the recessions of the 80s and the 90s as there is a lack of liquidity this time around. Just 18 months ago there was a wall of cash but this has now turned on its head.”

Mr Matthews said: “Our priority is to complete the ongoing contracts that Nor-Screen has and attempt to secure the sale of the company as a going concern.

“The interest we have already received since being appointed is very positive and we remain hopeful that a satisfactory outcome can be achieved.”

Bill Hesse, the current chairman, founded Nor-Screen which trades as NSL Integrated Print Solutions, in 1972. in 1998 NSL moved into its current 75,000 sq ft factory. Mr Hesse’s son, Duncan, is NSL’s managing director.

The administrators were called in by the company’s directors on Monday.

The choices for struggling businesses: Pages 26&27

More UK retail woe: Page 37