Melbourne direct mailing house Dynamic Direct has entered voluntary liquidation, with all staff terminated and all equipment to be sold off. It is not yet known whether employees will receive their full entitlements.
The business ceased trading following a general meeting on Wednesday May 31, with Adrian Hunter and Robyn Erskine of Brooke Bird appointed as joint liquidators. "Over the preceding months the business lost a number of its key customers and sales force, so sales started to significantly decline and they were unable to address those issues," Hunter said.
Hunter said Dynamic Direct's management placed the company into voluntary liquidation, and it was not prompted by the actions of any creditors. "The directors took a proactive step. We’re not aware of any legal action taken by creditors against the company at this stage," he said.
The company's equipment will all go under the hammer in online auctions later this month. "We’re currently looking to auction off all the company’s plant equipment, and we’re making arrangements with the customers to collect their goods. There is a significant quantity of office and mail distribution machinery for sale – all which will be soon be available for auction via Grays Online. We expect this online auction to take place during over the coming weeks once an inventory of items has been completed," Hunter said.
Employees may not receive their full entitlements, and Hunter advises sacked staff to lodge claims with the Department of Employment. "It is unknown at this stage whether the terminated employees will receive their entitlements in full from company asset realisations, but all have been directed to contact the Department of Employment to lodge claims pursuant to its FEG employee assistance program," he said.
Andrew Macaulay, CEO Printing Industries, said this closure was evidence of the damage Australia Post had done to the printing industry with its reductions in bulk mail discount pricing. "Today we see one of the vibrant SMEs in Victoria close its doors. Australia Post should hang its head in shame," he said.
Australia Post was no longer collecting on Dynamic Direct's account at the time of its closure; however, it was still distributing mail for Dynamic Direct customers with their own accounts. A spokesperson for Australia Post said they would work with representatives to ensure pending lodgements went ahead. "We were sorry to learn that Dynamic Direct has gone into receivership. We are working with their nominated representative and their customers to minimise any inconvenience and ensure that pending lodgements are accepted and processed as soon as possible. We have a range of Bulk Mail Partners that customers can use for their future mailings," the spokesperson said.