ICSM Business Membership Group: fighting late and non-payment – print firm crashes over 90 day credit terms; sign firm is liquidated; and an auction is set for a collapsed company

By Harry Mottram: Welsh print outfit Lexon has shut after the cash ran out leaving 60 workers out of a job and suppliers out of pocket. Writing in the print industry trade website, Jo Francis penned: “Lexon (GB) Ltd, which traded as Lexon Group, was based in Crumlin near Newport. It specialised in creative print services including packaging, exhibitions and displays, commercial print, and storage and fulfilment.

The business shut up shop on November 12, 20224. Jo Francis of Print Week reported: ”Lexon (GB) Ltd, which traded as Lexon Group, was based in Crumlin near Newport. It specialised in creative print services including packaging, exhibitions and displays, commercial print, and storage and fulfilment.”

The owners blamed a hike in National Insurance contributions and late payment by customers as one of the reasons why it failed, and the owners had decided to enter into a creditors’ voluntary liquidation (CVL) process.

Jo Francis reported the company’s managing director Garth Davis said: “Our trading position has been made untenable by a slow squeeze from several positions. Repayment of finance from the effects of Covid, combined with a fourfold increase in energy costs in 2023 and the bad debt from the collapse of three print management companies resulted in us posting slightly unfavourable profit results last year. As a result, one of our major material suppliers decided to withdraw our credit line in August. Following that, another large paper merchant gave notice to the company that they were also cancelling any further credit facility from 20 November 2024.”

ICSM’s ian Carrotte said he understood the firm allowed credit terms of up to 90 days and this ‘very generous’ agreement had been abused leaving a cash flow crisis picked up by the bank. He said 30 days should be plenty in the printing and allied trades and any breach of that limit should be treated by putting the offender on stop immediately.

Jo Francis has also reported on a business owner with a history of businesses that have failed. The Print Week journalist wrote: “Rymack Sign Solutions is being wound up by the Official Receiver, following a court order to that effect. The company, which traded as PFI Group, had been in a state of limbo for months. A notice for compulsory strike-off was filed in March, but this action was suspended the following month. Rymack’s accounts for 2022 were never filed, and its accounts and confirmation statement are both flagged as overdue. The business, owned by PFI Group CEO Darren McMurray and his wife Nicola via holding company Touchwood Holdings, was also the vehicle used to acquire Works Manchester in May 2022. That deal ended in tatters after Rymack/PFI failed to make agreed payments and Works Manchester collapsed into administration in December 2023, leaving a multimillion pound shortfall. Rymack Sign Solutions is now being wound up following a petition made by Siemens Financial Services, a creditor of the company. At the High Court of Justice on 30 October, Judge Prentis ordered that Rymack Sign Solutions be wound up and the costs of the petitioner be paid out of the assets of the company.”

Ian Carrotte of ICSM said the sorry saga had all the hallmarks of a ghost insolvency where the firm was basically trying to continue trading whilst technically insolvent. He said ICSM understands that McMurray ‘had form’ as someone who had seen other firms he ran struck off in the past. Official Receiver R Dury of Nottingham has been appointed as liquidator reported the trade publication.

And finally Richard Stuart-Turner has reported on a delayed auction of the remaining assets of QC Polymer of Bilston who had the £1.3m worth of kit stolen before the original auction. The journalist reported: “Viewing is by appointment only at the site at the Cannon Business Park in Bilston from 9am to 3pm next Monday (9 December). The auction will then end at 2pm on 10 December. Collection will be by appointment only from the Bilston site from 9am to 3pm on 12 and 13 December. On 19 November, G J Wisdom & Co. had posted details of a £25,000 reward it is offering for information leading to the recovery and sale of the stolen machinery, which it said was stolen between 18 October and 4 November.”

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ICSM CREDIT
For information on ICSM visit www.icsmcredit.com or call 0844 854 1850.
ICSM, The Exchange, Express Park, Bristol Road, Bridgwater, Somerset TA6 4RR. Tel: 0844 854 1850. www.icsmcredit.com. Ian.carrotte@icsmcredit.com