News
B&T rescue collapses as offer comes up short of asset sale
Kevin Sarney's rescue bid for Butler and Tanner (B&T) has fallen through due to insufficient funding, ending the hopes of almost 300 workers at the Frome book printer.
The management team, led by Sarney with the support of fellow directors Dave Mills and Jeremy Snell and former managing director Peter Maunder, had hoped to resurrect the business, which was closed on 26 April.
However, it has emerged that their bid has been unsuccessful due to start-up and high machinery costs.
Sarney said: "Our team has worked tirelessly to bring this to a successful conclusion and save the business and the jobs of the workforce.
"It is with great sadness that we have to announce that at this stage we are unable to find a way forward."
He added he remained hopeful that someone would realise the potential of the business and said that there were still some "options on the table".
However, he acknowledged that time had all but run out to rescue the company before the online auction, planned for the end of the month.
Mark Harman, director with Target, who advised the management team on their bid, said: "The rescue bid succeeded in attracting funding but unfortunately not sufficient to make it a viable proposition.
"The management team pulled out all the stops in their attempts to save the business. Sadly this was one of those cases where it was simply too late."
PrintWeek understands that a £250,000 bid was launched for the company, which fell short of the anticipated £400,000 or more that the administrator could garner from a liquidation of the company's assets.
The £250,000 offer was little more than half the figure expected for the sale of B&T assets
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Comments
Clive Keeble - 18 June 2008
A black day for Frome with this latest news. I would have thought that Kevin Sarney's verbal bid of £250,000 was very realistic : it will be interesting to see how much cash is generated by next week's 748 lot auction.
Sarah Cassidy - 18 June 2008
A very unusual thing has happened...............i have been rendered speechless!
Jack Sheperd - 18 June 2008
The annoying thing is I offered to help but nobody contacted us
Clive Keeble - 18 June 2008
There are some publishers whose design work and printing was completed by B&T in recent years : the digital file copies would have remained at B&T pending reprints...what is happening to those digital files - are they competely lost ??
Sarah Cassidy - 18 June 2008
how do you mean you offered to help and nobody contacted you?? Interesting?
Jack Sheperd - 18 June 2008
I mean I wrote on this site and wrote to K.Sarney with an offer of help and did not get a reply.
Bill Davis - 18 June 2008
Mr Sarneys offer was very realisitic considering he is looking at a virtual start up. When MPI bought the company - in a pre pack from the very same administrator last August - it was a going concern and was generating some cash. Therefore pre - agreed financial promises made to the administrator re taking on liabilites and debts could be met out of cash flow. Also MPI had sought the goodwill and support of suppliers to further reduce cash outlay, one such supplier - which went out of business last week did support the new B&T - and, in just nine months ended up with debts of almost £100K - someone should investigate the complete financial fallout from the collapse of B&T and also factor in the social costs of 270 people, who are still looking for work.
BT Meatman - 18 June 2008
Well played!
Jon Fennell - 18 June 2008
if the anticpated bid was 400k with 250k on the table, would a co op be considered? eg 150 staff put in 1k from redundo payment (as its guaranteed), which would give shares in a new business.
The fact the workforce would be prepared to make a financial commitment to the future and reduce investment risk, it could be attractive if all parties can work with it. (a B&T workers co-op invests 150k towards the proposed 250k promised.)
Also are there any sales guys left and how many clients would consider the working proposition going forward.
The bitterest pill would be the acceptance that some would be re employed, how would you as a group cope, its the make or break as far as the B&T community exists.
Stuart North - 19 June 2008
Hello Jon,
Something very similar to what you have suggested was put to Kevin Sarney.
Clive Keeble - 19 June 2008
Having just viewed last night's BBC Points West I am horrified to see customer's books laying at the machines and master digital files presumably on computers which are due to be auctioned next week.
http://news.bbc.co.uk/1/hi/england/7462382.stm
This whole episode has been a total disaster for the UK booktrade and a poor reflection on British industry and its ability to function in a world market.
Perhaps the Kevin Sarney consortium were never destined to gain control, but surely the administrators should have arranged completion for all work in hand. This administration appears as much about personalities as it does about balance sheets.
john peel - 19 June 2008
I totally agree with you Clive, in the local press today there is a story about an author whose books are locked in B and Ts. Reg Duquesnoy said that he has 4,000 copies of his book, "The Healing Power of Champagne" in side the firm and that he has cal ed twice to pick them up but was turned away each time He goes on to say that a large amount of his capital is locked up in there and no sign of getting the books. What a sad and sorry mess, thankyou Dolan !!!!
Andy Janes - 19 June 2008
Oh well it looks like every body at B&T will have to get jobs and forget B&T
reggie reynolds - 19 June 2008
i have a job in the trade arsehole ,why waste time writing on here when you are obviously a bit dim in my opinion. i wont forget B+T it was 18 years of my life and the people who i worked with were marvellous. get a grip SHUT YOUR STUPID MOUTH and keep your pathetic thoughts to yourself. you get on our nerves. mr janes.
Andy Janes - 19 June 2008
Just my view smiller
STEVEN ROGERS - 19 June 2008
well said reggie i dont know why people like to have a pop at unfortunate people it was a sad time for everyone concerned but at least we have integrity and stood by each other even when the chips were down we might not have a bright future at the moment but we are moving on and one by one we will get jobs i have been in print for 35yrs and had pride in what i done so i dont think people like mr janes has the right to be so condescending one day he might find himself in the same situation
john peel - 19 June 2008
Anyway Andy Janes just what does "SMILLER" mean ?
reggie reynolds - 20 June 2008
smiler not smiller One L not 2 aandy jjanes. well said steve
Julie Cook - 20 June 2008
I can't comment on the financial woes of B&T. The views of Jon Fennell regarding a employee ownership should be taken into serious consideration. 12 years ago our firm looked as though it would have to close, I was open to the staff in that we would need to change or shut up shop, I couldn't afford to pay overtime when we where busy then to have them doing nothing when there was no work. We worked together where 24hr working was in operation when needed, then in our quite period, they had a holiday, thanks to the staff we're still in business, making great profits. Best of all because of the trust we have, they have more of a say in the business than what I do. Officialy retired yesterday I don't need to worry about selling the firm, knowing that it's in the best of hands with the employees that saved it.
A print co-op if you would like to call it, would work wonders in the UK. I'm sick of all this talk about sending work to China, India etc.,, we can and should compete, we only need a bit of pride and flexibility. We already have the skills.
Jim Smith - 23 June 2008
Dear B & T Staff,
I think I speak for the industry when we say how sorry we are that things have ended up this way, and we wish you all the best for the future.
We are cosidering buying some machines for UK clients and wonder if there are any skilled staff with experience on the machines who would be prepared to comment on the machines in question. Perhaps even help in installation and training.
The first m/c is the Wohlenberg Golf binder and trimmer. Does it run well - any problems. What is Nordson unit for ?
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