Digital print specialist NXP Europe, which is based in Tunbridge Wells, appointed Andrew Watling and Carl Jackson of business advisory firm Quantuma as joint administrators last Friday (21 July), and within a day it had sold the business as a going concern to VR Print, another digital printer, based in nearby Tonbridge. All 30 staff kept their jobs.
In a letter to suppliers sent on 21 July and seen by PrintWeek, NXP managing director Peter Doyle said the business had “suffered a number of setbacks over the last 12 months” and that 2017’s general trading conditions had made it impossible to continue.
“It is with a heavy heart that the directors of NXP have taken the decision to place NXP Europe into administration with immediate effect,” said the letter, which went on to say that Quantuma had been appointed to oversee the administration and that VR Print had taken on the goodwill and assets.
A statement from Quantuma said that NXP had been hit with bad debts of around £131,000, which resulted in a reduction of funding, with increased pressure from a major creditor putting a further strain on cashflow.
Watling said: “NXP Europe had faced bad debts, but it was a fundamentally good business, which was capable of being rescued.
“Prior to administration, the company’s directors attempted to recover but when increased pressure from a major creditor started to hit cashflows we were called in as joint administrators.
“We were able to accept the best offer and complete a sale shortly after our appointment, resulting in 30 jobs being saved.”
Jackson added that a going concern sale had been considered essential to maximise the potential disposal value of the business, enabling a seamless transfer of the trade, assets and employees to VR Print within 24 hours.
Founded 13 years ago, NXP Europe runs a range of HP wide-format and Indigo kit and also offers finishing and binding. It became one of the first companies to purchase a Kurz B2 foiling machine at Drupa last year.
Along with digital print, VR Print also offers direct mail and print management services.
PrintWeek could not reach Doyle or VR Print managing director Andrew Balcombe for comment.