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News

B&T rescue bid nears deadline but deal still possible

Tim Sheahan, printweek.com, 16 May 2008

The rescue package being organised to buy book printer Butler and Tanner (B&T) out of administration looks certain to miss today's deadline (16 May), but a sale may still be possible before the company goes to auction.

Peter Kubik, administrator at UHY Hacker Young, said today's date was pitched "to focus the mind".

He said that if no contact had been made by the team, led by Kevin Sarney, ex sales and marketing director at Butler and Tanner, by close of business today, he would "continue with plans to put together an online auction for the company".

However, Kubik said this process can take "two to three weeks" and if an offer was to be tabled in the interim "then great".

Sarney insisted his team, which includes two fellow directors and former managing director Peter Maunder, was "working round the clock to put together an offer", but that he would not be rushed into an agreement.

"I'm not going to put together a half-cocked offer," he said. "I think, at the end of the day, we're working hard and want to do this professionally."

Sarney would not be drawn on the level of finance available and the nature of a proposed offer but added "the investors need due diligence and each day, things are evolving".

"All things will come clear in time. We want to keep this site in Frome so let's get this thing done," he said.

Kubik previously told PrintWeek there is mounting pressure to reach a decision on the fate of the printer, which was closed with the loss of nearly 300 jobs on 26 April and was put into administration on 8 May.

"There are big overheads at the site, including the lease on the building and the cost of the security team in place to protect the assets. I need to see some money soon," he said.

Comments

Mark Hutton - 16 May 2008

Obviously the administrators have a job to do and will need to sell the company's assets if a deal cannot be done. My observation is that i do not feel that those assets are very great unless the business is re-opened.

The site is landlord owned, much machinery is leased and that which is not is very specific to the large format book printing industry.

I would hope that Hacker Young continue to weigh the options carefully before proceeding with any online auction.

It does seem with regard to the "deadline" that it was designed to ramp up the pressure on the bid group to come in with an early offer. Not a particularly edifying tactic in my opinion.

Stuart North - 16 May 2008

Having spoken to a large number of the former employees at the company, I am confident that the team involved with this rescue attempt would receive massive backing from former staff. Even taking into account the package which involves changes to terms and conditions, pay cuts and a possible revised shift pattern. The union have already agreed to do as much as possible to help save as many jobs as possible and will continue to do so. Staff need to be up for the challenges ahead and many have promised that they would be, given the opportunity. This will make a big difference, because Dolan and MPI certainly did not have the workforce behind them, due to the dreadful way they tried to run the company and the shabby treatment of the workforce.

Stuart North

senior union rep

robert wyatt - 18 May 2008

I am as an ex employee of Butler and Tanner am convinced that the re-flotation of Butler and Tanner under a new management set up would be very good, not only for any ex employee that might be offered any positions there but for the local community and not least the UK book market and UK book publishers who like quick turn around on their orders which Butler and Tanner were well known for. As for investors, i am sure there is a lot of investment potential out there if only Kubic: would hold off the DOGS giving enough time to get something together, even small investors may put their money up for this one. Good luck.

Bob. Bindery operative.

Sue Acres - 19 May 2008

My Husband is an ex employee of B & T's I too am convinced that the re-flotation of the company under new management would be good, not only for any ex B & T workers but also for Frome itself.

It is so sad to see what has happened to B & T's. All the people (my husband and son included) that worked for the company took a great pride in the job that they did. Lets just wish this take over bid is successful and I am sure any ex employees that get the chance to work for the company again will fully support all the changes that need to take place to make it work successfully.

Sue Acres

kba topdog kba topdog - 20 May 2008

sue.....with all due respect,when you say they took pride in the the job they did.....you surely were not referring to the mighty hector???? only joking Sue....long live the b&t faithfull!!!