Paragon Group consumes tits-up print house Service Point
More than 400 jobs saved as London-based biz bought from receivers
Specialist print biz Paragon Group has acquired Service Point UK, saving the jobs of "more than" 400 staff less than a fortnight after it was placed into administration.
Directors at loss-making Service Point, Michael Barton-Harvey and Clayton Lee, called in the receivers on 24 April, according to a filing at Companies House
London-based Paragon confirmed in a statement that the UK business was placed on the market earlier this year "after our Spanish parent company could not restructure significant debt".
"We spent a grew deal of time working to find a new buyer for the business and appointed professional advisors to support us. We explored every avenue to achieve the best possible outcome."
The statement failed to mention the periodic administration nor the buy price but added, "the acquisition marks a new chapter for our business and will allow us to provide continuity of service to our national client base".
The most recently filed results for Service Point show sales in the year to 31 December 2012 declined to £40.4m from £44.9m in the prior year, as operating profit crossed the finishing post at £78k, down from £450k.
But after expenses including a provision against inter company receivables, charges from parent undertaking and restructuring were accounted for, the firm made an operating loss of £3.7m versus an operating loss of £1.53m in the previous calendar year when it coughed £1.78m in charges.
In 2012 the group employed 559 heads, and Service Point said "more than 400" of its staffers were kept on the payroll by Paragon, which creates bespoke print for clients in the automotive, hotels and hospitality, insurance and finance and public sector verticals.
Neither Service Point and Paragon were available to comment at the time of writing. ®