ICSM Business – Print Industry Insolvency News: the shocking scale of Sirane’s debts revealed in a news report in Print Week

By Harry Mottram: The print industry’s trade publication Print Week has reported on some of the difficulties faced by the printing and allied trades over the last few month. Journalist Richard Stuart-Turner reported on the Telford packaging company Sirane administration back in July which saw Coppice Alupack step in to buy the assets, sales book and intellectual property of the firm. At the time the 172 workforce were made redundant as Christopher Pole and Ryan Grant of Interpath Advisory took charge on the insolvency.

A report of the firm’s affairs has now revealed the extent of Sirane’s debts were at an estimated total deficiency of £2,502,116 with trade creditors owed £1,699,587. By any estimation of the firm’s woes these are eye watering sums.

Richard Stuart-Turner wrote: “The administrators said it is uncertain whether there will be sufficient funds to make a distribution to ordinary and secondary preferential and that, based on current estimates, it is unlikely that there will be sufficient funds to enable a distribution to unsecured creditors from the administration estate.”

It’s a highly problematic situation for Coppice Alupack who must have wondered about the scale of the debts. He continued: “172 staff were made redundant, with a skeleton crew of 22 remaining at the Telford site to assist with the realisation of assets and the orderly wind-down of the company, which ceased to trade following Interpath Advisory’s appointment.”

They have been allowed to continue to trade out of the Telford site and have sounded bullish about re-establishing Sirane as a name in the business. The report stated: “The company suffered financial difficulties due to surging energy prices, inflating operational costs and supply chain restraints resulting in cash flow pressures.”

Print Week reported: “Sirane generated revenue of £29.7m though it incurred an EBITDA loss of £3.9m in the year ended 21 December 2022. During the Covid-19 pandemic, the company's medical division initially benefited from an increase in sales volumes. However, the loss of a large government contract in 2022 negatively impacted the business and resulted in liquidity constraints.”

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