The Department of Industry has no intention of letting go of its $6 million stake in Focus Press. A spokesperson confirms action is already underway for the government to take back its cash, as liquidators Worrells Solvency and Forensic Accountants come on board to carve up the remains of the company.
A Department spokesperson tells Print21 that it was aware that Focus Press had gone into administration, confirming that, “In accordance with the funding agreement with the company the Commonwealth has commenced action to recover the funds.”
Focus Illawarra received the $6.05 million employment recovery grant from AusIndustry in early 2012. The grant agreement stipulated on creating a proposed 190 new jobs in the region following the closure of BlueScope Steel’s Port Kembla plant. Submission of regular reports with the Department was also a grant requirement.
It is not yet clear how much of the original $6.05 million the government will lay claim to. Administrators declined to comment on any details of creditors. The first meeting of creditors is nominally marked in for May 12.
Another meeting of a more sombre sort occurred today, as 25 print apprentices/trainees let go in the Focus closure met with the Illawarra employment coordinator at the Riverwood Centre in Dapto. Things look bleak, as workers are advised to the government's General Employee Entitlements and Redundancy Scheme (GEERS). The Department of Industry commented only that Centrelink offices were available to provide support for retrenched workers.
Mark Shergill, BPA, has bought up select Focus assets and the company name, and tells Print21 the plan is to fold what remains of the business into his Print Warehouse site. Shergill is expected to confirm details of the buy-up in the coming days.
While the Matraville, South Strathfield and contentious Illawarra plants are already on the market, the fate of the new $8 million Canberra site remains unknown.