NEWS FLASH! Shock closure of Moirs Paper as paper margins bite

The shock closure of one of the longest established firms in the industry is indicative of the razor thin margins forced on merchants by a consolidating industry. The company will cease trading on June 30, transferring its stock to the newly opening NSW branch of Focus Paper in Girraween. The new company has undertaken to help realise the assets of Moirs Paper, including assistance to collect trade debts.

The board of Alexander Moir & Co issued a statement saying that following its decision to cease trading as a paper merchant, it intends exiting the industry in an orderly fashion with minimum disruption to customers. The arrangement with Focus is intended to bridge the transition period

Alexander Moir & Co was a family-owned company but is now held privately by independent investors. It is the latest independent paper merchant to feel the heat following Jaeger Paper’s takeover by KW Doggett last year and CPI’s incorporation of Boomerang Paper.

It fell victim to the increasing power of printers to reject price rises for paper, according to Chris Gersbach, Moirs marketing manager and industry veteran. “The customer base is changing. Printers are forming into larger groups and really putting the squeeze on. Despite increases in volumes, merchants’ profit margins are being cut all the time. I only hope other paper merchants learn the lesson from us and take stock about getting reasonable returns,” he said.

The new Focus Paper presence in NSW comes about as a result of the success of the company over the past three years in Melbourne. Initially headed up by such industry figures as Ian Harry (ex CPI) and Frank Huntley (ex Daltons and PaperlinX), the venture north is spearheaded by four directors; David Chatillon, Luke Wilkinson, Tony Corona and Stuart Le Mottee.

“We’ll take the Moirs’ stock to our new Sydney warehouse and do what we can to help,” said Lemottee.