Rescue, Recovery, and Closure Options for Print and Publishing Businesses

In a world that’s more digital, sales of printed newspapers and magazines are going down. The decreasing demand means less turnover and profit for businesses that rely on making and printing these items.

The increasing cost of raw materials, along with fierce competition from online printers, is squeezing margins in the printing industry. Some companies are being pushed to the brink of collapse.

Large, affordable digital printers are snatching jobs from local printing firms that can’t match their prices. In a world where everyone wants to save money, unfortunately, price often matters more than quality to customers when it comes to printed goods.

Printers, scanners, and finishing equipment come with hefty upfront costs, depreciate quickly, and need regular updates for your business to stay competitive. 

But if orders are not completed, justifying the investment in expensive machinery becomes challenging. Yet, not keeping your equipment current puts you at risk of lagging behind competitors in quality and may leave you unprepared to handle large orders when they do come in.

In addition to industry-specific challenges, printing companies also deal with typical business risks like losing a crucial contract, machinery breakdowns, or accumulating bad debt. 

Consequently, more and more printing firms find themselves grappling with these increasing pressures.

Winding up your print and publishing company through liquidation processes

For some firms, the business may be beyond saving, leading to considerations of closure options. The most common insolvency procedure is called a Creditors’ Voluntary Liquidation (CVL).

CVLs must be overseen by a licensed insolvency practitioner. Their role involves maximising the money from the company’s assets before initiating the steps to permanently shut down the business.

As part of this procedure, any outstanding debts of the company remaining after liquidating assets will be erased. Unless the director has personally guaranteed any of this debt, they can leave the company without being held liable.

How can I rescue my print and publishing company?

If your print or publishing company is experiencing financial challenges, taking action sooner rather than later will offer more options for you and your company. There are various business recovery options available that can help turn your company’s fortunes around before it’s too late.

This might include securing finance to improve your cash flow and keep operations running smoothly, discussing with HMRC if you’re behind on tax payments, or implementing a structured restructuring plan like a Company Voluntary Arrangement (CVA) if your company is struggling to handle its creditors.

Seek professional assistance from Vanguard Insolvency 

Vanguard Insolvency has been assisting company directors in managing their financial challenges for nearly 30 years. 

With over 100 offices nationwide, we offer confidential director support across the UK. Contact our team today to schedule a consultation with one of our insolvency practitioners. The meeting is entirely free of charge and provides the best opportunity to explore the options available to you and your company.