Digital Finishing Service winds down

Drop in volume ends finishing company’s 20-year reign in Sydney.

The Lane Cove-based company, which dates back to 1989, and employed 23 full-time staff, closed up the doors on 3 April this year and is currently in liquidation.

According to Richard Stone of Rodgers Reidy Chartered Accountants, who was appointed as joint liquidator in early April, the two key factors that played a part in the company’s demise was a fall in demand and the decision to move from Brookvale to Lane Cove, NSW, to accommodate a new binding machine.

“The strategic direction adopted by the company was to increase the output capacity of the business and take out additional finance for the machinery; but there was insufficient growth in income generated from customers,” he said. “The sales just weren’t there to cover the increased levels of fixed costs.”

Direct Finishing Service's equipment – which includes a Muller Martini Acoro A5 binding line and Heidelberg Stitchmaster ST300 is currently being handled by GraysOnline who will kick off the auction 28 May. Josh Sanders, general manager, industrial at GraysOnline, who is also handling another auction for McMillan Print, recently shut down by Bluestar, said that there has been quite a few liquidation sales for the printing industry occurring recently.

“Every industry is going through consolidation and these auctions present a really great opportunity for anyone in the industry to bid for, and buy, quality printing assets at quality prices,” he said.

Stone added that the director of Direct Finishing Service made the decision not to sell the company to another party due to a lack of demand in the industry.

“It did strike me as unusual that efforts were not made to see if value could be extracted for the company name, customer list or goodwill,” Stone said.