Printers owed in latest CSDM collapse
Tuesday, September 3, 2013
Fundraising agency CSDM Fundraising, which fell into administration on 28 June, owed around 400,000 to printers and direct marketing firms, according to the administrator's report.
Herefordshire-based CSDM Fundraising (CSDMF), a charity direct marketing agency, emerged in June 2010 under the directorship of Chris Stoddard, on the same day his previous company CSDM collapsed owing £1.4m. It is the third company, associated to Stoddard, to collapse in as many years.
According to the administrator's report produced by MB Insolvency, CSDMF owed unsecured creditors £739,172, at the time of its collapse this summer, with the largest creditors being SPI Direct Entry* and Affinion International, which were owed £173,699 and £126,800 respectively.
Other unsecured print and mailing operators included Apex Direct Mail, TFW Printers, The Envelope Works, The Colourhouse, Impact Mail and Print & Mail Solutions UK.
It is not anticipated that there will be any available funds for unsecured creditors, the report states.
According to the document, Stoddard claims his company was forced to enter administration because a subcontracted postal supplier failed to deliver its post, costing CSDMF around £300,000.
In a statment Stoddard said despite the amount owed to unsecured creditors being documented by the administrator as £739,172, the amount that would ultimately be due to third parties would be "comparatively small".
He said: "[The figure] actually includes inter-company claims amounting to some £160,000 and £204,000 of creditor claims that are totally disputed but excludes the £600,000 of claims that CSDM Fundraising has against two creditors for breach of contract."
"Relatively few creditors remain on the CSDM Fundraising's purchase ledger.
"Our principal aim has been to ensure that clients of the firm, all small charities, do not suffer as a result of the company's closure.
"None of the company’s clients has suffered any financial loss as a result of the administration.
"No members of staff have lost their jobs and we continue to have the support of our clients – who value our approach and the resources and expertise we bring. Neither have we - nor do we intend to - put other companies into administration."
Meanwhile another firm, CS Fundraising, also owned by Stoddard, has acquired the assets of CSDMF, including clients, contracts and obligations.
However, according to the administrator's report "there was uncertainty regarding the extent of assets included in the sale", resulting in ongoing investigations by MB Insolvency.
Stoddard confirmed that all staff had transferred to CS Fundraising. The business continues to operate from CSDMFs Ross-on-Wye base.
*Edit note: the CSDMF creditors' list filed by the administrator shows an amount of £173,699 owed to 'Swiss Post'. Swiss Post International UK Ltd has asked us to clarify that this sum is actually owed to SPI Direct Entry Ltd based in Stockley Park, a separate company that has a strategic partnership with Swiss Post.