Inkland faces lay offs after client administration
County Durham-based Inkland is facing the prospect of laying off staff after one of its clients went into administration, its boss said.
The company supplied HPM and Addo with printing consumables including ink and printing plates.
However, with HPM and Addo going into administration on 31 October, Inkland will only get a fraction of what it is owed.
While the company has not confirmed how much it is owed, it is believed to be more than £100,000.
Director Steve Wilson says he now refuses to do business with Addo Printing, which claims it has secured 30 jobs in buying HPM and Addo while also acquiring its assets, after being taken for a "serious amount of money".
"The managing director of Addo Printing, who was the managing director of HPM and Addo, has been in touch to seek our co-operation in supplying the new company," said Wilson.
"But we're being taken for a serious amount of money and we're not prepared to do business with them.
"It is fair to say 30 jobs have been saved, but what about the other impacts a pre-packed deal like this has on suppliers dealt the blow of a bad debt?
"We are likely to face the prospect of losing employees as a result and we are just one of the creditors in this position."
Wilson added that the company's financial year ended recently and, while it was set to be the most profitable since Wilson took over 14 years ago, it will now be its "worst on record".
"I run a successful business on Aycliffe Business Park, we have been here since 1985. We supply most of the printers in the North-East with their consumable products, and we have supported HPM, formerly Hillprint, for most of this time.
"But due largely to the economic downturn and the success of internet media, the printing industry has been shrinking and in steady decline for probably the last six years."
Inkland employs ten people at its Aycliffe factory and has an annual turnover of £3m.