Michael Wu’s south-east Melbourne digital print company Longbeach Printing has gone into administration. A skeleton staff is keeping the business running under an interim agreement with Print Focus as the administrator tries to sort out the mess.
Longbeach closed its doors last month but re-opened a couple of weeks later and had advertised for staff before Timothy Holden from Foremans Business Services was appointed late last week.
The on-again, off-again Longbeach saga follows Wu's high-profile departure last month from collapsed Port Melbourne digital printer On Demand after a dispute with co-owner brothers Moody and Abbey Aboughattas, who accused him of misrepresentation. On Demand has debts running into hundreds of thousands of dollars.
Holden says he's now preparing initial reports for creditors.
"We're trying to work out what happened but it's too early to say too much," he told Print21. "We'll go through a formal process where we secure and protect assets and talk to the directors but I'm not willing to go any further at this time because we don't have the full picture. The company is not trading. We'll prepare a report and arrange a creditors meeting in the near future."
Longbeach general manager John De Groot, speaking from the factory at Seaford North, said the company was in administration but confirmed that the doors remained open thanks to an interim deal with Print Focus.
"We're in voluntary administration but we're hoping we may be able to work out something long term with Print Focus," he said. "A handful of staff moved on and found other jobs when we were closed down for a couple of weeks last month so we're down to a total of three employees right now but we're still open for business."
Michael Wu bought the company last year from De Groot's father Josh.
The date for the first creditors' meeting is expected to be announced shortly.
Longbeach Printing provides a range of services including brand and print management and is an official supplier of Australia Made campaign labels and swing tags.
