Kwik Kopy's head office has taken temporary control of the Bondi Junction store until a new owner can be found. ProPrint understands that it has continued as a going concern, with all six staff remaining employed.
P&S Kasper Holdings, the holding company of the ex-franchisee, Paul Kasper, was wound up on 10 January. Worrells was appointed liquidator.
Kasper told ProPrint he thought his debts were about $1.5 million to $2 million.
According to the creditors list, Ricoh is owed $44,000, Trenear Printing $11,800, Masterprint $11,000, GBC $10,000, Express Envelopes $9,000, Mega Tabs Services $8,300, Konica Minolta $6,800, Océ Australia $5,900, Kwik Kopy Alexandria $5,700, Whirlwind Print $5,400 and CMYKhub $5,000.
Non-industry debts include $46,430 for KKA Royalty, $26,340 for Sydney FC and $22,550 for Julie Feller Real Estate.
Kasper said he had made the mistake of paying too much for the business, which meant it was always undercapitalised.
He bought the franchise in 2002 for about $750,000 and also took on about $150,000 of leases, he said.
[Feature: Print's bad debt burden]
"One of our biggest problems was we were never able to achieve the margins we needed," he told ProPrint.
"We were behind the eight-ball from the outset and did what we could to get it profitable. But in the end we had been dragging all this debt which caught up with us."
Kasper said the store had also been hit hard by the development of Westfield Bondi Junction, which started in 2002 and lasted for about three years.
Three shopping centres were closed to make way for the Westfield, which led to an immediate reduction in business for the suburb, including a revenue drop of about 50% for the franchise, he said.
"We had horrific problems with the Westfield development itself," said Kasper. The store's surroundings became dirty and noisy, because the business was located next to one of the entry points for the construction site, he said. Cement trucks also blocked its signage, he added.
The business also suffered once construction ended, because many of Westfield's tenants were franchises, which sourced their printing through head office arrangements, he said.
The first creditors meeting for P&S Kasper Holdings will be held on 23 January.
[LinkedIn: Should the industry stop operating on credit?]
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter