1,400 jobs are at risk as joint administrators, Zelf Hussain and Peter Dickens, from PwC review the situation, however they have stressed operations will continue and staff will be paid as normal. It is hoped they will find a suitable buyer for the businesses.
29/3/2016: Polestar Group has been acquired in a pre-pack administration deal, saving over 2,000 jobs across several companies within the group.
The printing business works with national titles such as Radio Times and Hello! magazine, producing millions of products a week for supplements and publications.
Upon appointment of joint administrators, Toby Underwood, Matthew Callaghan and David Baxendale from PwC, the group was bought by Polestar UK Print Ltd.
Underwood commented, “The group’s board came to a decision that an insolvency process was required to protect creditors, provide a maintained service to customers and to safeguard as many jobs as possible.”
“Preserving value and maintaining the business was a key objective, given that it is critical for the group’s customers to have assured continuity of service.”
“The transaction has avoided the uncertainty, cost and business damage of an open-ended administration process, and was the only viable alternative for the business in the circumstances.”
A quick and efficient process, pre-pack administration allows a company to be sold to a third party or new company, saving jobs and ensuring the business can continue running. Often it is a much better outcome for creditors than liquidation (where creditors may receive nothing back).