Printer's 'rebranding' angers creditors

Photo / Bay of Plenty Times

An Avondale printing business that went into liquidation last month owing $1.5 million started up again the next day under another name, leaving its creditors behind it.

The former Tasman Westside Printers has written to customers saying it has "restructured and rebranded", and that "apart from a name change, and a new exciting look, everything else remains the same".

The new company, TLP Limited, was incorporated on November 23 - a day before what was Tasman Westside went into voluntary liquidation.

Tasman Westside Printers was renamed Westside (2009) in September.

Liquidator Mike Lamacraft of Meltzer Mason Heath said the shareholders were buying a small amount of stock and work-in-progress from him.

The key assets of the business - property, and plant and equipment - were owned by separate companies associated with the shareholders, he said.

"They've lost a huge sum of money themselves, and really what they're trying to do is dig their way out of a hole."

TLP is owned by Lou and Beverly Vandermeer, who are the major shareholders in Westside (2009) through a holding company.

The Vandermeers were acting within the law, but were required to tell creditors what they were doing so those suppliers could make an informed decision about whether to keep dealing with them, Lamacraft said.

He had not seen this month's letter and was "not entirely happy" with it. "I wish they'd shown me that before they sent it because I would have put them straight."

Westside (2009) suffered from difficult trading conditions and the loss of certain clients, he said.

It fell behind with its tax obligations and could not meet a statutory demand served by the Inland Revenue Department.

IRD is owed $360,000 in unpaid GST and PAYE, and a further $350,000 in penalties and interest.

Staff are also owed holiday pay.

If all the company's debts were collected, the secured and preferential creditors would be paid but the shortfall owed to unsecured creditors would be $1.5 million, Lamacraft said.

Henderson laminating company Lamatex is owed $5000. Managing director John Sprague described the setting up of TLP as "blatant".

But he said it was too hard for small businesses to recover debts of that size. "What do you do, do you go chuck $10,000 and a lawyer at it?"

Denise Minehan, who owns print finishing company Finishing Worx, which is owed $4000, said she was "disgusted" with the situation.

She had not done any work for Tasman Westside for some years after running into problems getting paid and was talked into doing the most recent job by staff.

Vandermeer said most of his creditors were working with him.

In terms of the letter to customers describing "rebranding", that was all they needed to know, he said.

"As soon as you tell customers you're in liquidation they run for cover, don't they. So I'm obviouslytrying to protect my customer base, and at the same time sort out what I can with the creditors."