Management team buys The Plain Label Company out of administration
Label printer The Plain Label Company (PLC) has gone into administration and been bought back again by its previous directors.
The Nottingham-based company entered administration with Simon Plant and Daniel Plant, of London-based SFP, on 14 May.
According to PLC director Andrew Kneale, the company was bought out of administration by Rivers Midlands, which has Kneale and fellow PLC directors Michael Briggs and Ian Bullingham as directors, on 19 May.
Kneale said that Rivers Midlands, a dormant company which last posted accounts at Companies House in September 2008, would be renamed PLC Labels shortly.
Briggs and Kneale are also directors of another company, Rivers 2010, which was incorporated on 6 April 2010.
The pair have blamed PLC’s demise on a failed fixed-price contract with its largest customer.
In a statement to PrintWeek, Briggs said: "Within weeks of signing the contract, self-adhesive paper prices had risen dramatically and our customer would not accept a renegotiation of prices. This meant that although other parts of the business were showing a profit, these profits were being eroded away.
"With the large increases in material prices and HM Revenue & Customs not accepting our proposed plan, they issued a winding-up order against the company and we had no other option but to go into administration.
"We have secured the jobs for all of the staff and it is our intention to continue trading as usual without the loss-making customer. We should now be in a strong position to have a steady and secure future for our customer and staff."
SFP did not respond to requests for information.
Source: www.printweek.com - News
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