Print firm Polestar in administration
The UK's largest independent printing company, which has a giant plant in Sheffield, has called in administrators for the second time in a month, putting 2,000 jobs at risk.
Bosses at Polestar, which prints The Radio Times and Private Eye, called in PwC to handle the administration of two companies within the group, Polestar UK Print Limited and Polestar Stones-Wheatons Limited.
It comes after the firm’s largest customer decided not to transfer their business to the new company.
The move comes less than four weeks after several Polestar companies went into administration, and were snapped up by a new firm called Polestar UK Print Ltd in a ‘pre-pack’ deal in which a buyer is already lined up.
Polestar has a huge printing plant off Shepcote Lane close to Juction 34 of the M1. Nationally, some 2,000 jobs are at risk including 1,500 employees, 150 outsourced staff and 350 agency contractors
A PwC spokesman said: “Unfortunately the decision by its largest customer not to transfer their business to the new company as well as continued pressure from other stakeholders has threatened the viability of the business to the extent that directors have sought the protection of an administration for the two companies.
“The joint administrators’ immediate priority is to continue operations and to pay staff as normal while they assess the current position.
“They have started the process of seeking buyers, with the aim of ensuring the continuity of service for customers and of preserving the jobs of employees.”
Zelf Hussain, joint administrator and PwC partner, said: “We believe that there is a strong underlying business within the Group and we are focused on doing all we can to preserve value and maintain the business while we look to achieve a sale.
“We would welcome a dialogue with all interested parties and ask that suppliers and customers work with us to try to deliver a lasting solution for the business.”
Polestar prints more than 50 million products a week.