Magnify Media in admin as debts mount

One of Melbourne’s major large format print businesses Magnify Media is in voluntary administration, with debts approaching $5m.

Four parties are currently in discussions with the administrator over buying the business, which is continuing to trade on a week-by-week basis, and is being offered for sale on a sale or DOCA basis.

Magnify has known debts to unsecured creditors of $3.6m. Major creditors include the ATO which is owed $1.23m, Billboard Media owed $528,000, Freight Focus Management owed $474,000, HP owed $234,000, and Celmac, owed $228,000.

In addition, Magnify owes $1.13m in unpaid priority employee entitlements, including around $500,000 in unpaid super.

Its factoring company Grow Finance is owed $850,000 in outstanding invoices. Magnify is owed $1.3m from outstanding debtors, with another $122,000 not yet invoiced.

The company, ran by well-known print identity John Duplock, called in the administrators the day before Christmas Eve. Magnify had suffered due to the severe Covid downturn, which saw Victoria essentially close for months on end. It had also been subject to an audit by the ATO for unpaid superannuation.

Established in 2001 Magnify made a name for itself a decade ago when it was installing HP Scitex large format printers every year, putting in three in quick succession.

However, it suffered a devastating flood two years ago, which forced a move out of its premises. It now operates from leased premises in Mitcham, VIC.

It started 2020 with 49 staff, but ended it with 27 – many on JobKeeper – as staff were let go throughout the year.

The Magnify Media group comprised Magnify Media, Magnify Print and Duplock Enterprises, the latter two dormant for the past couple of years, with all three in administration.