Publishers Left Reeling as MPG Printgroup Set to Enter Administration Next Week

News that troubled MPG Printgroup will formally enter administration next week has left some UK publishers reeling. The news was confirmed by MPG Printgroup CEO Tony Chard in a letter to all employees. Details contained in the communication to employees were revealed late yesterday by PrintWeek.
In the letter, Chard outlined that the company can no longer operate its three print facilities (Bodmin and Kings Lynn had earlier suspended operations) and employees at the Cambridge facility could only be paid up to May 31st and were sent home at 3pm on Friday. MPG has been beset by problems over the past few months with setup overruns since it took over printing for Cambridge University Press (CUP) in 2012 at a new 43,000 square foot facility, and this is believed to have hastened its move into administration. Since 2011, the company has also used capital investment of more than £3 million for new inkjet and binding technology.
MPG Printgroup was considered to be on of the largest independent book and journal manufacturers in the UK offering POD (print on demand), digital short run and offset printing, and global fulfilment services for many clients in the publishing industry.
Lloyds and HSBC are MPG’s two main banks for working capital and Chard confirmed that he expects them to appoint an administrator next week. 

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