Victorian mailing house Dynamic Direct is in voluntary liquidation, with a loss of clients this year contributing to the downfall of what was one of Melbourne’s premier mail houses.
The business has operated since 1987, and acquired the Victorian arm of major direct marketing company iGroup, in 2013, in a significant merger, adding on thirty new staff, bringing the total to 80.
Former CEO Alan Read retired from the business in 2016.
Dynamic has been losing clients for several months. Rival mailing houses questioned the management of the business, and pointed to Australia Post’s current strategy for mail as a likely contributor to the downfall of the business.
Andrew Macaulay says, "Here is another example of an Australian letter handling business that has been catrostrophically affected by Australia Post. It is ironic that the confirmation of this liquidation is comes only days after Australia Post again used their monopoly pricing powers to the detriment of the Australian commercial letters sector."
Australia Post is currently distributing mail for Dynamic Direct customers with their own accounts with the monopoly, and says “We were sorry to learn that Dynamic Direct has gone into receivership. We are working with their nominated representative and their customers to minimise any inconvenience and ensure that pending lodgements are accepted and processed as soon as possible. We have a range of Bulk Mail Partners that customers can use for their future mailings.”
Nicolas Ficinus, CEO of Victorian mailing house Data Direct speculates the loss of a large client may have played a part in the voluntary liquidation, alongside increases in bulk mailing costs.
“I can only imagine they have lost a significant client and that has ruined their structure. There is no question that any increase in the price of post is going to impact on volume, but I cannot draw a line between that and the business going under.”
Luke Pearsall, 20 year mailing veteran and general manager, Active Mail railed against Australia Post for not properly consulting with mailing houses, “It is a shame to hear about another mailing business going under. I hope there is not too much damage to the staff.
“I have always been outspoken and it has got me nowhere. It is like David and Goliath. The price rises have hurt some sectors. The promotional mail rate of direct mail, which accounts for 90 per cent has not gone up too much, but the rate is due to go up again.
“With the price rise due in July, the promo cost will go up 6-7 per cent. You are dealing with a dictator’s mentality. Ahmed Fahour got caught out with his wages and he quit. He did not care about letters, or the mailing system."
The company’s equipment is due to be auctioned off in the coming weeks, with the process being handled by Grays Online. Bird says a significant quantity of office and mail distribution machinery will be for sale once inventory is completed.
All staff have lost their employment, and may have to apply to the government for their entitlements.
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