CPS announced on 15 February that its operating assets had been acquired by OfficeMax Australia. The shell of the Melbourne print management firm was then put into administration on 26 February.
Administrator James Downey from JP Downey & Co told ProPrint that CPS owed $3-4 million, although its debtor book was worth about $1.4 million.
"Hopefully I'll have a reasonable amount of success in collecting those debts and hopefully there will be some sort of return to creditors, but at the moment, I can't estimate what that will be," he said.
CPS's only other assets are about $2,000 of furniture and office equipment, added Downey.
The first creditors meeting is being held today. Downey said he expected creditors to liquidate CPS at the next meeting, which will probably take place at the end of March.
An OfficeMax spokesperson told ProPrint the company "would not be taking on [CPS's] debts".
"With CPS going into administration, CPS is responsible for resolving creditors' needs and is currently doing all it can to work with suppliers."
[Opinion: Do forensic checks before extending credit]
The spokesperson also said that suppliers had generally responded favourably to OfficeMax's acquisition of CPS.
"OfficeMax’s extensive customer base will enable it to continue and, where possible, grow its relationship with many CPS suppliers through potential new business opportunities.
"It is happy to open an account with suppliers and offer better trading terms, and has communicated directly with each supplier to help manage the transition."
CPS director Mark Freeman, who has joined OfficeMax, was in a meeting and could not be reached for comment.
However, he said in a statement that putting the company into administration had been a difficult decision.
"We value our relationships with our suppliers and will continue to work with them to resolve any outstanding situations the best we are able in our circumstances," he said.
"I remain strongly committed to the industry and CPS’s loyal suppliers. In my new role at OfficeMax, I will continue to grow supplier relationships.
"With new trading terms and an extended client base, suppliers are likely to have new business opportunities for growth through this transition.
"Supplier payment terms have not yet been determined. We will be open and transparent in all of our dealings with suppliers to help them achieve the best outcome under the circumstances."
[LinkedIn: Are print managers good for the industry?]
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