Major shareholder Peter Edwards told ProPrint “a lack of volume [had] caused a cash crisis” that had contributed to debts of more than $1.2 million.
He first held fears for the company in December, he said.
“Sales to November were satisfactory… The core business was with fulfilment companies. Good Impressions did not lose their work – the volumes dropped very quickly. We also had a sales rep set up as a broker and over the Christmas break [he took] significant… work.”
Good Impressions owes $390,000 to BJ Ball Paper, $193,000 to Dalton Paper, $85,000 to Agfa, $36,000 to Fuji Xerox and $34,000 in payroll tax.
The printer, based in the suburb of Condell Park, also has yet-to-be-quantified debts to its 35 staff and the National Australia Bank for payments on a press.
Good Impressions’ future was first called into question last August, when minority shareholder Andrew Page filed a winding-up application over a shareholder loan.
Voluntary administrator John Vouris, from Lawler Partners, told ProPrint the application had been withdrawn in the belief the company could trade its way out of trouble. A merger with another company had also been considered. There was no connection between the winding-up order and subsequent administration, he added.
Vouris and co-administrator Bradley Tonks were appointed on 5 March. Vouris said they were examining the books to figure out the company’s long-term prospects. In the meantime, no redundancies would be made.
“As far as the administration is concerned, it’s business as usual,” he said. “All outstanding orders will be fulfilled… Our energies are centred on selling the business as a going concern.”
Good Impressions has been advertised for sale with expressions of interest due by 26 March.
“We’re talking to the people who were in joint venture discussions before we arrived and we’re talking to anyone who has a bank cheque,” Vouris said.
He added it was too early to speculate on the likelihood of a sale.
“It’s a good business and has a good name and great premises and modern equipment, so it has all the pluses. It gets down to a willing buyer who has the money – and that may be the problem.”
Vouris wouldn’t reveal what the company’s assets were, however the advertisement said it turned over $8.2 million last financial year.
The advertisement described Good Impressions’ strengths as: “High-quality, multicolour commercial printing; graphic design and production services; large-format, multi-purpose printing; specialised plant and equipment; fully trained staff; customer database; and domain name.”
Vouris said a financial position would be ready and most of his investigation completed by the first creditors meeting on 15 March. A second meeting is expected to be held by 18 April.
Good Impressions’ problems are a sign of an industry suffering “reduced volumes and margin pressure”, according to Edwards.
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