REACON & MMW3DEGREES IN ADMIN

Reacon Australia and sister company mmw3degrees are in administration, and looking at a restructure to take the print and mailing businesses forward.

The administrator is currently running Reacon Australia and mmw3degrees as trading concerns, and has been presented with a consolidation plan and a DOCA (Deed of Company Arrangement) which includes a promise of a capital injection and operational expertise.

CEO of the Sydney-based businesses is Jahangir Khan, who is CEO of Reacon Group. Print21 understands Reacon Group is in the process of being acquired by the owner of a Sydney-based print company.

Print21 also understands that Fujifilm was paid last Friday for the JetPress 1160CF high volume inkjet web press it installed shortly after drupa last year, and for a cutsheet Revoria.

The DOCA enables a company to come to a mutual understanding with its creditors to pay them back so many cents in the dollar over an agreed time frame, while it carries on trading, usually in a slimmed-down form. It is not without controversy, as it effectively enables a business to shed much of its debt and carry on in the same market, while competitors complain bitterly that they are having to trade while paying 100 per cent of their tax, super, rent and supplier invoices.

Reacon acquired mmw3degrees, the specialist direct mail and data-driven communications service provider, when was suddenly placed into voluntary administration at Christmas two years ago, just six weeks after Jennifer Slarke, the ex-wife of the late owner Laurie Griffiths, became company director. Griffiths passed away 18 months prior. The company had 40-50 staff at the time.

Reacon is part of the same Bridgestone Holdings group that bought Theo Pettaras’ Digitalpress in September 2020, and then merged its Indigo and Copiworld business with it into a North Sydney location.

At drupa last year, Reacon Group ordered a Fujifilm JetPress 1160CF for its Australian operations, becoming the first printer in Australia to take the 160 metres-a-minute inkjet colour press. The deal was signed with Fujifilm Business Innovation Australia for Reacon business mmw3degrees, with the press set to be delivered virtually as soon as drupa was over.

The first meeting of creditors is Tuesday 22 April 22 at 1pm. The administrator is Cathro and Partners.