An attempt to rescue book printer MPG Printgroup has failed, and the group will now definitely go into administration.
MPG shareholders Tony Chard and Andy Simpson had been attempting to pull off a rescue of the collapsed group’s Kings Lynn and Bodmin print sites.
This morning (18 June) it emerged that plan had proved unsuccessful.
In a statement, chief executive Chard said: "The shareholders of MPG Printgroup have today announced that they have abandoned the possibility of a rescue plan for parts of the Group. Despite overwhelming support from the company’s employees, lenders, customers and suppliers the challenge to overcome a number of inherent issues has proved too great.
"As a result all remaining employees at MPG’s plants at King’s Lynn and Bodmin are to be made redundant while steps are taken to put the company into administration which is anticipated to occur within the next week or so. It is hoped that the technologically advanced operating sites will be preserved, with opportunity given to interested parties to purchase the assets in situ.
"It is a matter of deep regret that a rescue plan was not possible and the shareholders extend their thanks to all Employees for their long service and dedication over many years."
Chard told PrintWeek: "It has been a very emotional roller coaster but this pales into insignificance against the backdrop of 200 employees losing their jobs."
The group experienced a cashflow crisis last month, apparently due to over-running costs at its new Cambridge site. It had been in limbo since.
Creditors including paper companies and asset finance businesses contacted by PrintWeek are yet to react to the latest turn of events.
Check back for updates.