Attempts to keep printing company Geon Group operating while in receivership could fail, as the first creditors meeting got underway at noon.
Fairfax Media reports that receivers McGrathNicol pleaded with suppliers to ensure paper over the weekend came to nothing, and that a spokewoman for the receivers would not provide immediate answers about which Geon branches were affected.
According to Fairfax Geon employs 1,000 people in Australasia.
Meanwhile, Print21 reports that the first creditors meeting went ahead at noon, and that “the ban from suppliers seems to be holding with no movement in or out of GEON Banksmeadow as of yesterday.”
Geon prints a variety of brochures and magazines, including Manufacturers’ Monthly.
Spicers, a supplier to Geon, has commented regarding the printer's difficulties and why it "cannot supply significant stock with no certainty concerning the future relationship." An extract can be read below.
"Spicers is one of Geon’s smaller paper suppliers and provided support to Geon through continued supply of paper up until the point of the business being placed into administration and receivership," the statement reads.
"Spicers is an unsecured creditor of Geon and is currently owed more than $1 million. As a small supplier to Geon and an unsecured creditor, Spicers has determined that it is not in a position, nor is it Spicers’ role to attempt to ensure the financial future of one of our customers."