A multimillion-dollar printing business that collapsed into voluntary administration last week has been thrown a potential lifeline after a competitor decided to step in to operate the company while administrators assess a possible restructure.
Sydney Allen Printers, which is based in Parramatta in New South Wales and turns over around $14 million annually, appointed external managers last week.
However Sydney Allen Printers continues to trade, with fellow printing company Mascot Printing entering into a licence agreement to manage the business while administrators explore a possible sale or restructure.
In a statement issued to SmartCompany, Mascot Printing’s managing director Joe Pizzo said he is “very pleased” to be able to support Sydney Allen Printers.
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“With key staff and management onboard and the financial backing of Mascot, we are confident that we will be able to service all Sydney Allen customers without any interruption,” Pizzo said.
Sydney Allen Printers employs around 50 people, with a creditors’ meeting scheduled for April 19.
Mascot Printing has signalled its interest in purchasing Sydney Allen once the voluntary administration process wraps up.
SmartCompany understands that should Mascot Printing put up its hand to purchase Sydney Allen Printers, it would aim to retain as many staff as possible.