Restructure of Express Print & Mail
Following an article in Print 21 published 18 September, Wendy Chadwick has had a number of enquiries about a recent business restructure. She said: "To correct any misconceptions and fully inform those who know only part of the story", she has, "decided to issue this statement."
"The article in Print 21 was correct in stating that the printing business being operated by Wendy Chadwick under the Express Print & Mail (EPM) trading name was purchased earlier this year from 128950489 Pty Ltd (formerly known as Express Print & Mail Pty Ltd).
"What may not have been expressed or made clear is that the purchase followed a period where:
- 128950489 Pty Ltd was badly affected by the pandemic and unable to renegotiate its lease terms and had also difficulties meeting legal expenses and the contingent liability for the litigation that Mr C Krieger had launched against it;
- EPM managed the business for 128950489 Pty Ltd for several months; and
- EPM and Wendy Chadwick received extensive advice from experienced legal and business advisors.
"The purchase also followed:
- Independent valuations from a registered valuer being prepared and used to ensure the purchase price for the business was for market value;
- All suppliers being paid;
- Almost all employees being employed in the new business with all entitlements being transferred over;
- Payment of superannuation for employees has either been finalised or is the subject of ongoing discussions taking place with the ATO for any remaining liability with the intention that all outstanding superannuation liabilities for employees of EPM (pre-their joining EPM) will be paid;
- The banking secured creditor being paid out in full.
"It should be noted that 128950489 Pty Ltd did attempt to renegotiate the terms of its lease but the landlord made no allowances for the trading issues being experienced by the company due to the pandemic and offered a market review of rental payments only which were not sustainable going forward. The result was that the negotiations were unsuccessful and 128950489 Pty Ltd had to vacate the premises. However, the landlord has access to a very substantial bank guarantee to pay out any monies due, and it should be noted that the reported amount of greater than $1m being owed to the landlord in the insolvency report is a contingent amount being calculated to the end of the lease. That is, it is not the amount owed to the landlord at all, but the amount that would be owed if the lease went its full term and the landlord was unable to relet the premises. The landlord has relet the premises so the contingent debt amount has been dealt with.
"That is, 128950489 Pty Ltd and EPM have made every endeavour to ensure that the sale was finalised in the most appropriate manner with the least disruption possible for creditors, suppliers and employees.
"The result is that EPM, which has 52 staff, now provides a full range of print services from its Sunshine Coast site. That is, a Sunshine Coast business and 52 Sunshine Coast jobs have been recovered with the bank and suppliers being paid and employees having payment of their entitlements ensured through the business purchase."