Magnify liquidated with $5m in debts
The administrators at one of Melbourne’s major large format print businesses, Magnify Media, has pulled the plug, with the company set for liquidation after racking up debts approaching $5m.
The business – operated by well-known industry identity John Duplock – has been under administration since Christmas Eve, with four parties showing interest in buying it, but no deal eventuating.
Magnify has known debts to unsecured creditors of $3.6m. Major creditors include the ATO, which is owed $1.23m, Billboard Media owed $528,000, Freight Focus Management owed $474,000, HP owed $234,000, and Celmac, which is owed $228,000.
In addition, Magnify owes $1.13m in unpaid priority employee entitlements, including around $500,000 in unpaid super. Former staffers will have to look to Fegs for their entitlements.
Its factoring company Grow Finance is owed $850,000 in outstanding invoices. Magnify is owed $1.3m from outstanding debtors, with another $122,000 not yet invoiced, which if collected, will take overall debts down to around $3.5m.
Magnify had suffered due to the severe Covid downturn, which saw Victoria essentially close for months on end - with the exhibition, conference, entertainment, sport, retail sectors that formed much of the Magnify client base shut. It had also been subject to an audit by the ATO for unpaid superannuation.
Established in 2001 Magnify made a name for itself a decade ago when it was installing HP Scitex large format printers every year, putting in three in quick succession.
However, it suffered a devastating flood two years ago, which forced a move out of its premises. It now operates from leased premises in Mitcham, VIC.
It started 2020 with 49 staff, but ended it with 27 – many on JobKeeper – as staff were let go throughout the year.
The Magnify Media group comprised Magnify Media, Magnify Print and Duplock Enterprises, the latter two dormant for the past couple of years, with all three in administration.