Receivers in at Photobition
Receivers from Andersen have been called in at Photobition, the troubled display graphics group, after banks refused to agree a restructuring of the group's £110m debt.
The move, which puts nearly 2,000 jobs in the US and UK at risk, came after the group’s shares were suspended on Monday following its failure to issue results for the year to 30 June.
But the receivers said that they had already transferred some of Photobition’s UK businesses into a new company, Service Graphics, which will be headed by existing Photobition management.
The group, which had embarked on a frenzied expansion programme over the last three years, collapsed two weeks after saying talks over a management buy-out had failed, as had a subsequent rescue package from Alchemy, the venture capitalist.
The new management team at Services Graphics said: ‘We are confident that, without the problems associated with Photobition’s parent company, and with the continuing support of our long-established client base, Service Graphics Limited has a bright future.?
At their peak in March 2000, Photobition’s share stood at 556p, valuing the company at £536m. Last Friday, before suspension, the shares stood at 2.75p, put a value of just £2.7m on the group.
