ADMINISTRATORS called in to take over the running of print giant Pindar have made their first redundancies.
A total of 31 workers have lost their jobs at the company’s Preston operation.
Pindar went into administration on Tuesday, almost three weeks after the company was put up for sale as a result of reporting losses of £1.4 million.
Once appointed administrators immediately sold Pindar’s web offset and bindery division to York Mailing, based in Elvington.
The move secured the future of Pindar’s largest operation, and saw all 255 staff transferred as part of the deal.
However Pindar was still left with another 177 employees working in smaller divisions of the company, including the Preston site, and a further 47 Scarborough staff working for a confidential printing operation.
Pindar Preston runs a sheet-fed printing facility and employs 72 people in total. The firm produces a variety of work including magazine and catalogue covers.
A spokesperson for administrator KPMG said they were continuing to trade the Preston site, along with other sites in Aylesbury and York, while they seek a buyer.
KPMG also confirmed that Pindar owed trade creditors in excess of £6 million, and that it is too soon to say whether there would be a return to unsecured creditors.
The Pindar pension scheme, which had a deficit of £19.5 million according to recent statements, is also an unsecured creditor. The Pension Protection Fund has been notified of the company’s administration.
Worries also arose surrounding the future of 40 workers on temporary contracts, who were transferred to York Mailing as part of the takeover.
Nobody from York Mailing was available to comment.
Following the takeover York Mailing stated printing will continue in Scarborough at the Pindar site and under the Pindar name.
The Pindar Group also owns the worldwide print shop franchise Alphagraphics Inc, headquartered in Salt Lake City, Utah in the US, and Pindar North America, the multi-channel software provider.
The US operations continue to trade as normal and are not affected by the administration.