PINDAR went into administration owing its final salary pension scheme £90 million.
The news comes a day after it was revealed Pindar Plc and Pindar and Son Ltd owed almost £114.5 million to creditors when the administrators were called in.
In a report issued by administrators KPMG to creditors, the eight figure pension deficit is blamed as a major contributing factor for the collapse of Pindar and Son Ltd.
The report states: “The company was a member of the group’s defined benefit pension scheme which has an estimated overall deficiency of c£90 million of the scheme is wound up.
“The company does not have the ability to repay these liabilities on demand and therefore the directors resolved that the company should be placed in to administration and its assets should be realised for the benefit of its creditors.”
Unite the Union representative Tony Randerson said he had not heard from any union members at Pindar voicing concerns about the pension scheme.
Many of the company’s Scarborough employees were transferred to buyers of Pindar Plc’s sub divisions.
The web offset and bindery division, the largest Scarborough based part of the business was bought by York Mailing for £2.5 million, with all 225 staff transferred as part of the move.
The other Scarborough arm, which operated a confidential printing operation, was sold to Secure and Confidential Documents Ltd. All 13 employees were transferred.
Advice regarding pension scheme on the government’s directgov website states: “If your employer goes out of business, its pension fund can’t be used to pay the company debts, so the fund is protected.
“If there is a shortfall in the fund you may receive a smaller pension. In this case you may be eligible for compensation and help from the Pension Protection Fund (PPF) or the Financial Assistance Scheme (FAS).”
Between them Pindar Plc and Pindar and Son Ltd owed 46 Scarborough firms a total of £202,000 when they went in to administration in July.
They had a lengthy list of 1,008 creditors, one of which was HM Revenue and Customs which was owed in excess of £4 million.
When administrators were called in Pindar Plc also owed £14.7 million to three divisions of HSBC, one of which lent the firm an extra £3 million in March.