Sources close to GWPM say the printer and print manager collapsed due to cashflow issues and overspending on a drawn-out software project.

The sources say directors of paper manufacturer AG Paper paid more than they could afford for GWPM when they bought it from its founder, AFL Brownlow Medallist Greg Williams, in 2008.

They say the profitable company developed cashflow issues as directors Frank and Daniel De Matteo struggled to pay loans used to finance the acquisition.

AG Paper was yesterday in the Federal Court ordered to be wound up after a wind up application by Itochu Australia, the Australian arm of Japanese diversified company Itochu Corporation. No one appeared in defence of AG Paper.

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The final nail in the coffin came last July when GWPM began a software project aiming to unify the businesses, which became costly and dragged on for 6-8 months.

Vertical, the company that bought GWPM in August, was registered with ASIC in May 2012.

The managing director and sole director of Vertical is Tom Curtin.

The two companies appear to have had a relationship before Vertical bought GWPM. GWPM suppliers have provided ProPrint with copies of quote documents from Vertical, with Vertical letterheads, they say are for jobs ordered from GWPM as far back as April. The purchase orders would then come back from GWPM.

Vertical also has the same Vella Drive, Sunshine, VIC address on its website as GWPM.

Staff at GWPM interstate offices contacted by ProPrint say they have not been paid in a month and have not officially been told anything about the situation by GWPM or Vertical.

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