CMYKhub exits UK market, WTTB steps in
Tuesday, April 23, 2019
Trade printer CMYKhub is closing its UK production facility at the end of this week, and has reached an agreement with Precision Printing’s Where The Trade Buys division to continue supporting its customer base from a new midlands office.
CMYKhub UK was set up in 2014 when the Australian company took over the Retford trade printing operations of RCS.
In a statement, CMYKhub said its decision to exit the UK market was due to a number of factors, and emphasised that it was not related to financial pressures. The firm said all creditors would be paid in full.
“The closure of CMYKhub UK is not due to financial issues. It was triggered by our current lease agreement ending in May and followed a detailed assessment of future growth opportunities in the UK based on asset reinvestment requirements, limited revenue returns in a market with aggressive competitors and high cost inputs,” the firm stated.
“All CMYKhub UK staff will receive full entitlements under their redundancy and all creditors will be paid in full.”
Chief executive Trent Nankervis said: "The closure of our UK business is one of the steps in our strategic focus on other opportunities within the Australasian region.”
PrintWeek understands the UK business employed around 20 staff.
Three employees have joined Where The Trade Buys (WTTB) and, as of today, will be based at a new midlands office in Worksop. The business also has offices in London and Sunderland.
Gary Peeling, chief executive of Precision Printing and WTTB, said: “CMYKhub’s Austrialian owners decided to close their facility here and contacted us about offering an ongoing solution for their customers.
“We’ve worked with them to align products and prices, and giving customers the same terms. We will also be able to support customers with additional product groups that we already have, including wide-format and digital printing.”
CMYKhub UK had around 1,000 actively trading customers, Peeling said.
Peeling has also acquired the firm’s Scodix sensory finishing device, which will be relocated to London and will run alongside an existing Scodix S75 machine there.
The three employees are general manager Lee Edwards, customer service representative Caroline Charman and pre-press technician Jonathan Valentine.
“We’re keen to make the transition as seamless as possible. Like us, the platform is the tool, supported by people and it made sense to continue with that model," Peeling added.
CMYKhub said it was committed to a seamless transition for customers and would fulfill all orders placed before the close of business on 17 April.
It also had a Koenig & Bauer Rapida litho press and assorted finishing equipment, which is set to be sold separately.
Precision Printing employs 170 staff and expects to achieve sales of £26m this year.