Bruce Peddlesden pleads ill health as Michael Wu, Ability Press, leads a team of On Demand senior management in operating the Port Melbourne-based business under a service agreement.
A new company, Production Print (Aust) is running the business under an agreement with On Demand but whether it continues will be subject to the decision of Bent & Cougle, the liquidator. Currently the business is operating normally but Michael Wu confirmed he has yet to speak with the liquidator.
The shock fall from grace for the iconic business, long regarded as Australia’s largest digital printing company, is likely to spark a storm of criticism, especially from other Melbourne printers who have competed with Peddlesden over the years. He maintains the business is viable and could continue if he had his health but circumstances have forced him to look for an alternative way to keep the operation going.
Obviously there are serious financial issues with Peddlesden citing the disastrous acquisition of fellow digital operator, DPA, a couple of years ago as a catalyst for the current problems. He admits faulty due diligence with the result that the expected revenue did not eventuate.
Despite going straight to liquidation, Peddlesden says the current service agreement is the best hope for the staff to retain their jobs and if it all works out, keep their entitlements.
Given the scale of the business, the status of machinery leases and paper supply, the liquidation will have substantial impacts on the industry. It’s understood the large Océ ColorStream 3500 inkjet, the 1st in Australia, has been transferred to the new operating company in a separate agreement. Peddlesden hopes the other equipment leases can also be swopped across.
As the business was on credit watch and operating on a cash basis for some time, the exposure of paper suppliers and others is understood to be limited. The ATO and Fuji Xerox are two of the major creditors.
The continuing operation of OnDemand under the new arrangements is far from a done deal. The liquidators will be fielding multiple offers from other Melbourne printers for whom the OnDemand business is a jewel in the crown. The customer list is one of the most prestigious in the industry and the technology has always been at the cutting edge.
“Look, if I had an alternative I’d keep fighting but I need to take some serious time away to look after my health,” said Peddlesden. “I know I’ll cop a lot of criticism for this but I’m happy that the staff at least have an opportunity to keep their jobs.
Hamish MacKinnon and Michael Quin, from Bent & Cougle, the liquidators, did not get back in time before publication.
Following publication of this report, Print21 was contacted by Jaco van Staden, Sales Director, On Demand Print Pty Ltd, based in Cromer, Sydney. He wanted to emphasize there is no relationship between his company and Bruce Peddlesden's in Melbourne. "In fact, we're having our best year yet," he said.