Leading Melbourne print group Mercedes Waratah, co-owned by Moody and Abbey Aboughattas, has scooped up Michael Wu's collapsed digital print business On Demand.
The Port Melbourne-based On Demand - described as Australia's largest digital print company - had remained open for the past several weeks under an interim services agreement signed with Docklands Ability Group - also co-owned by the Aboughattas brothers - since going into administration on July 22.
Administrator Mathew Gollant of Rodgers Reidy said at the time that the company's debts ran into "hundreds of thousands of dollars." Major creditors included Canon, HP, BJ Ball, KW Doggett and Spicers.
About half of the On Demand workforce of 50 staff reportedly lost their jobs. It's not yet known whether any of those workers will be re-employed. Gollant said that some employees made redundant would be able to access federal government entitlements. "Our investigations are continuing and Michael Wu, as sole director, is assisting us with our inquiries,” Gollant said at the time.
Wu was a partner in Docklands Ability Group until July when he was ‘dismissed’ after a dispute with the co-owner brothers, who accused him of misrepresentation.
News of the On Demand takeover by Port Melbourne neighbour Mercedes Waratah Group followed a second meeting of creditors held late last week.
Mercedes Waratah released a press release to confirm the acquisition, with a spokesperson adding: "It's important that the right message gets out there and is not convoluted":
Mercedes Waratah is proud to announce the acquisition of the On Demand Business.
“Making a good system even better”- that’s the commitment of the Mercedes Waratah group of companies.
Mercedes Waratah is proud to launch its new digital business Data Direct Digital to synchronize with their recently purchased mail business Data Direct Mail. This takes the groups combined sales to over the $50,000,000 mark.
Mercedes Waratah Group COO Brett Chalmers says “we have selected the best people, systems and assets from On Demand, and together with our already strong asset base and financial stability, we can assure all our Customers that our foundation is rock solid and we are absolutely in the print and mail industry for the long haul. “
The Mercedes Waratah focus is on broadening our group offer to the client base of all 3 platforms.
From our large offset presses, to full digital automation right through to plastic wrapping, inserting, mailing and fulfilment we have from start to finish covered.
The complete suite of services and products brings improved performance and customer experience giving our customers the best value proposition.
The new Data Direct Digital business will operate from inside our Port Melbourne plant utilizing the state of the art print and finishing equipment 24/7.
We again welcome On Demand and its customers to the Mercedes Waratah Group and thank them for being loyal during this period of uncertainty.
Meanwhile, liquidator Timothy Holden is investigating the failure of Michael Wu's Seaford-based Longbeach Printing, which went into liquidation last month.