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ANALSYIS: Picton paper options shrinking

Wednesday, 14 November 2018
By Wayne Robinson

Paper: possible Picton options thinning

The ability of a DOCA enabled Picton Press to operate an ongoing sustainable business will to a large extent depend on its paper supply, and options appear to be thinning.

There are only three suppliers that could deliver what Picton needs; national players Ball & Doggett and Spicers, and local operator Stockman Paper. Of these Ball & Doggett and Stockman are both unsecured creditors, the former to the tune of several hundred thousand dollars, although it is insured, the latter for tens of thousands.

Craig Brown, CEO of Ball & Doggett told Print21 yesterday that, “We will not be supplying Picton Press with paper. It is a question of integrity. I have written to the owners to let them know that.” Similarly Stockman is certain to refuse supply.

That leaves Spicers – and leaving aside any ethical or strategic imperative – its CEO David Martin has previously stated he will not supply any printer he cannot get insurance for, and with Ball & Doggett’s insurer looking at between 1c and 2c in the dollar for the $400,000+ it is owed it is unlikley any insurer will step forward.

That could leave a bleak outlook for Picton. It is unlikley to be able to source supply direct from mills as that is fraught with risk. It could try buying from an east coast merchant, or buying through a third party.

Any merchant that does supply to Picton will likely face the wrath of the rest of the Perth printing community, who are fuming at what they see as Picton being able to shed its debt and compete against them without it.

One Response to “ANALSYIS: Picton paper options shrinking”

  1. November 15, 2018 at 8:06 am,

    Old Tme Regional QLD Printer
    said:

    OH Please! Don’t supply them and close this down, let it pass to the keeper. I agree with the operational (and viable) printers in Perth, if BJ, Spicers and Stockman supply thy are doing a dis-service not only to Perth printers but to every printer in Australia. Maybe if the directors could sell some assets, or raise the cash to pay the unsecured creditors 40 or 50 cents in the dollar, but 2 cents ….really, we get more for our empty beer cans.

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