STARLEATON CUSTOMERS VENT ANGER
Print businesses who paid deposits and full payments for equipment and parts from Starleaton that never arrived in the run-up to its move into VA are angry and frustrated at the turn of events, especially as last week's liquidation means any hope of recovering any of their cash has vanished.
The print businesses in question are particularly aggrieved as they allege Starleaton took their money for purchase of parts and equipment, which didn't arrive when promised in the weeks and months before the VA.
In its report to creditors, the administrator Cathro & Partners said it had identified that the Starleaton companies were likely insolvent six months prior to going into VA, by mid-2023, and possibly as far back as two years before that.
Wide-format supplies company Starleaton is now in liquidation, erasing any faint hope the aggrieved print businesses had of recovering all or part of their money through the company’s DOCA, which collapsed last week on non-payments of agreed $33,000 a month funds by Starleaton.
Print21 knows of seven print businesses located across the Eastern Seaboard, and there are likely more, that paid money to Starleaton in the run-up to the move into voluntary administration on 19 January last year, during a time those businesses allege Starleaton knew it was struggling to stay afloat.
Starleaton collapsed with $19.5m worth of debts, and less than $2m in realisable assets. It went into a DOCA for 13 months, but was liquidated last week, meaning that the print businesses in question, as unsecured creditors, will get nothing back from the company or its liquidators.
The collapse of Starleaton, and the disappearance of their deposits and payments, left the print businesses in question scrambling to cover the gaping holes in their finances.
One Queensland printer paid Starleaton a deposit for a Zünd router in May 2023 and then the full balance to $137,500 on 1 Dec 2023. It says the router was promised to be delivered 12 days later on 13 Dec 2023, but told Print21 that in fact it had never left the Zünd factory in Switzerland by the time of the VA in mid-January.
A New South Wales sign printer told Print21 it received a double hit, as it ordered a new Epson from Starleaton which was never delivered, and suffered its existing printer having its printheads removed by Starleaton for an upgrade, which never happened, leaving the business without its new printer, and without its existing printer. The owner says Starleaton called him on 11 January, just eight days before it put itself into VA, requesting the full $44,000 payment for the new printer before installation, which the print business paid. He was agog to read just the following week that Starleaton had placed itself into VA.
A Melbourne display printer says it ordered parts for its Starleaton-supplied cutting machine in October, for which Starleaton required a five figure payment in full, even though the print business had an account with Starleaton. The customer was told the parts would take two weeks to arrive. He says obfuscations and excuses from Starleaton followed over the next three months, the parts never arrived, and when he phoned the manufacturer directly in January following the Starleaton VA he was told the order had never been placed.
Another major, Queensland display print business eventually agreed on a deal with Zünd for its equipment that it had ordered through Starleaton but which never arrived, but it still ended up costing the business 150 per cent of the original purchase price.
Everyone who had put money down for Zünd equipment that spoke to Print21 said Zünd itself has behaved honourably, and with impeccable standards, towards them. Zünd itself was owed $385,000 by Starleaton. Zünd has now established a direct subsidiary in Australia. All Starleaton's other suppliers, many owed significant sums by Starleaton, moved swiftly to set up new distribution partnerships in Australia.
All impacted print businesses spoken to by Print21 used some very choice and unrepeatable words and terms to articulate their views on their experiences with Starleaton, which has left them angry, frustrated and in some cases struggling to keep their businesses afloat.
The dealings at Starleaton have also caused disquiet across the whole industry.