Exclusive: Whirlwind merchants owed millions

Two paper merchants have invoices out with stricken print business Whirlwind for more than $1m each. Meanwhile staff have been told to apply to the government's Fegs scheme for their entitlements. The merchants were paid their invoices last month, but are now waiting to see whether any payment will come at the end of this month. Both were supplying around $300,000 - $400,000 worth of paper a month to Whirlwind. Speaking to Print21, a director of one of the merchants said, “Staff there have been given forms to ask the government for their entitlements, so I don't hold out much hope of Whirlwind coming up with our money.”

The company has yet to appoint an administrator or liquidator, but has sold some of its assets to CMYKhub, which has also secured a lease on the Whirlwind print site in Knoxfield.

The amount of money owed to the paper merchants will leave other unsecured creditors nervous about their own chances of recovering much of any money owed to them.

Staff have been told to apply for their entitlements through the governments Fegs scheme, but are unable to do so as the company is not yet in liquidation. Staff are currently being paid on daily rates.

Whirlwind was formed 21 years ago, but has been struggling since it bought high profile Sydney commercial printer Lindsay Yates two years ago from Paul Richardson and David Shoppe. It originally intended to position it as Sydney's premier high quality printer, but a year later transferred all the offset kit to Melbourne, and ran Sydney as the company's digital hub.

CMYKhub stepped in this week to buy the assets of Whirlwind, its CEO Trent Nankervis telling Print21 that the equipment “is a good fit. We are growing at 10 per cent a year.” Former long-time Whirlwind sales director Gis Marven joined CMYKhub in January as a consultant and independent board member.