Global MP situation unclear
Monday, June 23, 2014
Global Media Production appears likely to go into administration ahead of a possible change of ownership.
The Yorkshire-based company was formed after Kevin Dunstall’s Cogent B2B vehicle acquired the St Ives Direct Bradford business in an £8m deal in September last year. It was subsequently renamed Global Media Production (Global MP).
St Ives remains the firm’s largest client.
Last week a Notice of Intention to Appoint an Administrator was filed at the High Court by Centric SPV1.
On the same day (17 June) a winding-up petition filed by recruitment company ETS Consulting was withdrawn.
Centric Commercial Finance provided Global MP with a fresh round of financing just three months ago.
The deal provided Global MP with a £7.5m working capital facility, which chief executive Dunstall said would help it to pursue potential acquisitions.
Wyndeham Group owner Walstead Investments has been tipped by industry sources as a potential buyer for the business. Neither Walstead chairman Mark Scanlon nor Wyndeham chief executive Paul Utting was available for comment at the time of writing.
Global MP is one of a handful of UK companies to have short-grain web production. The main player in this area is York Mailing.
Suppliers owed money by Global MP are anxiously awaiting concrete information. One told PrintWeek: “There’s a lot of noise about them and a rumour whizzed around the industry last week that they had gone bust. We heard the management team were all in London on Friday for a big meeting.”
Another industry supplier said Dunstall had failed to keep key suppliers on-side. “There is a lack of goodwill because of the way he treats people,” the supplier said.
The £36m turnover business employed around 180 staff at the time it was acquired. Dunstall subsequently merged his Prospect Mailing Services operation into the Bradford site, after placing Prospect into, and then buying it out of, administration in a £400,000 deal.
A Notice of Intention to Appoint an Administrator gives the company ten working days to resolve its financial issues, although it can be extended. During this period legal action is stayed and creditors cannot commence any fresh legal action.
Dunstall has not responded to PrintWeek’s requests for comment.
Tim Hawkins, commercial director at Centric Commercial Finance, issued a statement saying: "Our relationship with our clients is confidential, we are unable to make any comment."
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