Polestar, the UK’s biggest independent printer, has gone into administration after losing a key contract with Daily Mail publisher DMG Media putting around 1,500 jobs at risk.
PricewaterhouseCoopers (PWC) has been appointed as administrator for Polestar, which fell into administration yesterday (Wednesday). and has begun the hunt for a potential buyer.
Zelf Hussain, joint administrator at PwC, said: “We believe there is a strong underlying business within the group and we are focused on doing all we can to preserve value and maintain the business while we look to achieve a sale.
“We would welcome a dialogue with all interested parties and ask that supplier and customers work with us to try to deliver a lasting solution for the business.”
Polestar prints around 50m magazines a week including various DMG Media titles, Hello!, the Radio Times and Grazia.
It appeared that Polestar’s financial troubles had been stabilised when last month it was acquired by Swedish private equity company Proventus Capital Partner, one of its major lenders. But DMG Media said it would not transfer its contract.
Polestar, has suffered financial problems due to falling newspaper and magazine sales. Over the past ten years, it has shrunk from running 28 sites to seven sites.
In 2011, its financial problems meant that the Pension Protection Fund was forced to take on its pension scheme.
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