Mystery surrounds the operation of broke digital printing company, On Demand, with conflicting reports as to who is actually running the Port Melbourne business as the administrator tries to find a buyer.
According to Administrator Mathew Gollant of Rodgers Reidy, the business, once described as 'Australia's largest digital printer' is now being run under an interim license by Docklands Ability Group - the company owned by Moody and Abbey Aboughattas. The brothers are on record as declaring they have no connection with On Demand.
There is an understandable desire by all concerned to put as much distance between themselves and the collapsed On Demand, once owned by Michael Wu, an erstwhile partner in Docklands Ability. Administrator Gollant, appointed on 22 July, confirms On Demand is deep in the red with debts running into hundreds of thousands of dollars.
Major creditors include Canon, HP and paper companies BJ Ball, KW Doggett and PaperlinX (Spicers), amongst others. Gollant says 25 employees were made redundant but the remaining 25 staff members have stayed on as the business continues trading under a 6-week license granted to Docklands Ability Group - pending the outcome of the administration process. The phones at On Demand currently go to a messaging service and no-one at the business was available to comment.
"We're still waiting to get the final list of creditors but the total will be several hundreds of thousands of dollars and maybe more," says Gollant. "We're now seeking expressions of interest in the company and its assets and we've had a few already." Gollant declined to identify the interested parties.
The first On Demand creditors meeting was scheduled to begin today at 11.00am at the offices of Rodgers Reidy in William St, Melbourne. A second meeting is due later this month.
Docklands Ability Group was launched last year in a $50 million mega merger of Docklands Press and Ability Press - with their respective owners Aboughattas and Wu described as joint 50/50 owners in the new enterprise. Wu was 'dismissed' from Docklands Ability last month after reports that Aboughattas had accused him of misrepresentation.
Meanwhile, Wu's south-east Melbourne digital print company Longbeach Printing has re-opened for business a couple of weeks after it closed its doors.
Gollant confirmed that Longbeach is not connected to the On Demand administration process.
Longbeach was reportedly sold to Wu last year but shut its doors last month shortly after he left Docklands Ability Group. There were reports that Longbeach staff had been escorted into the factory to collect their belongings.
Now, production has resumed at the factory in Seaford North, the website is back up, the phones are being answered but no-one was willing to talk. "John [de Groot, GM] is on the factory floor but won't be making any comment," said a staff member.
Longbeach is now advertising for a new pre-press operator.
We require an operator with experience of CS Programs (Indesign, PhotoShop, etc). Agfa Apogee knowledge would be an advantage.
The job includes the set-up and proofing of artwork and overseeing and assisting with the running of an Xerox Printer, Anapurna and Hp 360 Latex.
Please email your application to: john@longbeachprinting.com.au