Kwik Kopy buys liquidated Sydney printer for six-figure sum

David Bell, managing director of Kwik Kopy Australia, told ProPrint the demise of Cityprint had resulted in a positive outcome as all 13-14 staff had been retained, the customers were still being served and only minimal disruption had occurred.

Cityprint will continue trading under its own name, although its two Pitt Street outlets, located within a few hundred metres of each other, are being consolidated into one to save money, according to Bell.

“From the point of view of the customers, everything will carry on the same,” he said.

Brian Silvia and Andrew Cummins of BRI Ferrier were appointed voluntary administrators of Cityprint on 5 March and then liquidators on 5 April.

BRI executive director Philip Armstrong told ProPrint that Cityprint had attracted interest from three companies. Kwik Kopy had bought the business while it was in administration, before its residual assets and liabilities had been placed into liquidation, he added.

Armstrong said Kwik Kopy had acquired Cityprint’s name, its intellectual property, one of its two leases and its equipment – although not its printing equipment, which was leased.

Cityprint had about $2.3 million in liabilities and $1 million in assets when it entered administration, according to Armstrong.

He said the business owed money to its bank, employees, suppliers and leasing companies, but unsecured creditors would probably get back less than 10 cents in the dollar.

Armstrong said Cityprint was pushed over the edge after going from break-even to losing about $70,000 to $100,000 per month during January and February.

“They had very high fixed costs and were unable to maintain revenue,” he said.

Armstrong held up Cityprint’s three former owners as examples for other troubled printers to follow as he said they had taken decisive action after encountering trouble.

“Because they acted relatively early, they were able to maintain the business, save the employees and keep serving the customers,” he said.

Cityprint’s former owners could not be reached for comment.

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