End of the road for Automedia as administrators sell off their order book 

Loughborough printing outfit Automedia has been sold by joint administrators Andrew Pear and Michael Solomons of BM Advisory to Jump Design & Print Limited of Stanstead Abbotts. All ten employees have lost their jobs.

Automedia was placed in administration on November 6, after losing a major client and suffering a downturn in business according to BM Advisory LLP.

Tess Egginton of East Midlands Business Link reported: “On 17 October 2019, BM Advisory was engaged to advise on possible options for restructuring the business. Following a thorough review of the financial position of the Company, all options were explored and on 22 October BM Advisory was engaged to commence a targeted marketing campaign with a view to achieving a sale of the business.

“During the marketing period, 27 enquiries were received and 18 parties returned non-disclosure agreements. This resulted in two offers from unconnected parties for the order book, work in progress and intangible assets.

“As the business was fast approaching a period where the Company typically sees a seasonal decline in sales, the Company was placed into Administration on 6 November 2019 with the appointment of BM Advisory. Shortly thereafter, a sale was concluded for the goodwill, customer list and order book to an unconnected party, Jump Design & Print Limited.”

Andrew Pear said: “Whilst there was significant interest shown during the accelerated marketing period, there were no offers for the business as a going concern. Our main objective was to achieve a better result for the creditors as a whole, and this was accomplished through the conclusion of the sale in short order of the Company’s goodwill, work in progress, order book and a motor vehicle.”

Andrew Pear said the sale did not include the plant and machinery, office equipment and other motor vehicles, which will be marketed for sale via an online auction.

Ian Carrotte of ICSM Credit said he felt for the firm as the loss of major client can cause problems. He said: “I’m particularly concerned to hear of job losses with Christmas only weeks away. Having one major client can skew a business plan which is why it is best try and have a broader mix of customers. It is I’m afraid a sign of the times as print work and lucrative contracts are thinner on the ground.”

Automedia was established in the late 1980s but grew out of a marketing firm begun a decade earlier but after winning a major contract for print for Olympus Cameras the firm invested in a Heidelberg press and expanded into design and direct mail.

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