Print managers CPS and Foxprint rolled up by US stationery giant

OfficeMax Australia said the move into marketing services marked a logical progression for an organisation that had evolved from being a paper manufacturer to a diversified office supplier during its 43-year history.

"Our clients are asking us to expand in multiple directions, with print management and corporate identity among the services they’re requesting most frequently," said Charles Agee, Australian and New Zealand managing director.

OfficeMax Australia said it had taken over all contracts held by CPS and Foxprint Solutions (FPS), which will now jointly trade as OfficeMax Australia, effective immediately.

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Foxprint was jointly owned by CPS and Linfox Australia. CPS came close to folding in June 2012 after a winding-up application was filed by Workers Compensation Nominal Insurer, also known as WorkCover.

The deal has created uncertainty for print suppliers to CPS and Foxprint. It has been suggested that debts to trade suppliers are over $1 million and could be as high as $2 million.

It is unclear if OfficeMax Australia has assumed the liabilities of CPS and Foxprint. When asked, OfficeMax told ProPrint: "Both CPS and FPS account service teams are contacting suppliers directly to convey essential information regarding the transition.

"Suppliers to CPS and FPS with immediate queries should make contact with their current account service representatives.

"The acquisition by a large and reputable organisation such as OfficeMax presents a significant opportunity for suppliers, who can look forward to mutually beneficial relationships, improved terms of business under OfficeMax’s ownership, and potentially greater scope to work across OfficeMax’s extended client base."

One of CPS's creditors is Melbourne printer Ability Press, which claims to be owed $60,000.

Managing director Michael Wu told ProPrint that neither OfficeMax nor CPS had contacted him to pass on news of the deal, but that he expected his debts to be honoured.

He said Ability Press had previously stopped working for CPS because the print manager had taken too long to pay its bills, but resumed the partnership in December after being assured things had changed.

Former CPS director Mark Freeman told ProPrint he was unable to comment after signing a confidentiality agreement as part of the sale.

OfficeMax is a multibillion-dollar office supplier, headquartered in the US with operations in Australia, New Zealand, Europe, Canada and Mexico.

The deal marks something of a trend for US-owned office products companies to enter Australian print management, after Staples acquired Corporate Express in 2010.

[LinkedIn: Are print managers good for the industry?]

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