Printing company HPM & Addo saved in pre-pack deal

Written by companyrescuelondonadmin 3 April 2017

The Newton-Aycliffe based printing firm entered administration last Friday (31st October) after HPM lost several contracts over the last few months.  HPM joined forces (although not formally) with Addo earlier in the year to create a stronger and more viable business. However still with cashflow problems, HPM decided to call in the administrators on Friday. Luckily, the Addo part of the business was able to secure last minute finance to acquire the assets of HPM, saving 30 jobs. Unfortunately, even with the much needed funding, 12 redundancies were made in order for the business to continue trading.

Managing Director (and former Addo manager), Keiran Bayley, said “Unfortunately the business model for staffing levels in relation to turnover simply didn’t stack up. Ultimately we were faced with the difficult choice of making 12 redundancies or 42”. “We could spend an eternity looking back and picking the bones out of what could have been but the pure fact is there is a print business in Newton Aycliffe with 30 employees that wants to look to the future, grow, invest and contribute to what is a wonderful region.”

The printing industry has faced many changes over the last 10 years – those that have adapted to new technology and processes are going strong while others have gone bust. With up and coming services like 3D printing, the sector will continue to change rapidly, inevitably causing financial issues along the way.