Walstead pulls out of possible Global MP deal
Friday, June 27, 2014
Wyndeham owner Walstead Investments has withdrawn its interest in purchasing struggling direct mail business Global MP.
“I can confirm Walstead has withdrawn its interest to acquire the Global MP business,” said Walstead Investments chairman Mark Scanlon.
“Our intention was to continue manufacturing from the Bradford facility, maintain as many jobs as possible and provide the customers with an ongoing service.
“However, we have been unable to complete our commercial review of the business, which would have included meeting with representatives of the workforce yesterday (26 June).”
Walstead had been in negotiations with Baker Tilly, which is the prospective administrator at Global MP, and had secured the support of St Ives, the site’s largest customer, and also an agreement with Close Brothers to take on its web presses and other major assets.
However, Scanlon had set a deadline of yesterday (Thursday, 26 June) to complete a deal to minimise disruption for staff and customers.
Walstead withdrew its interest at 9.30am this morning (Friday, 27 June).
St Ives sold its £36m turnover Bradford Direct Mail wing to Kevin Dunstall’s Cogent B2B last year, for £8m.
On Monday (23 June) it emerged that the business, renamed Global MP, was likely to go into administration due to cashflow issues, after a Notice of Intention to Appoint an Administrator was filed at the High Court by Centric SPV1 on 17 June.
A Notice of Intention to Appoint an Administrator gives the company 10 working days to resolve its financial issues. During this period legal action is stayed and creditors cannot commence any fresh legal action.
On Wednesday 25 June, Walstead revealed it hoped to buy the business “to maintain as many jobs as possible” albeit with “changes to the cost base of the company”.
PrintWeek understands that as well as Walstead, both York Mailing and Paragon Group had looked at the Global MP business. However, neither has commented on the situation and it’s unclear if there are any other interested parties.
The Notice of Intention is due to expire on Monday, 30 June, although it can be extended.
Global MP gains new funding
Global MP has secured a fresh £7.5m working capital facility from Centric Commercial Finance.
Global MP situation unclear
Global Media Production appears likely to go into administration ahead of a possible change of...
Rescue bid imminent at Global MP
A white-knight bidder is poised to step in with a rescue deal for the stricken Global MP business.
LATEST COMMENTS ON PRINTWEEK