Communisis sold off following Christmas layoffs
Administrators have been appointed to deal with the marketing and print company
Shining a spotlight on the industry
Thursday, 11 Jan 2024 13:06 GMT
With operations ceasing at the group’s facilities in Leeds (pictured), Cramlington, and Liverpool, it is speculated 638 employees will be made redundant. Image: Google Street View
Communisis has made headlines in local publications and the trade following the announcement of job terminations and administrator appointments over the 2023 festive period.
The Liverpool ECHO reported that 196 jobs had been cut at the Liverpool headquarters of Communisis back in December and later revealed details of a “harshly written” letter to employees whose jobs had been terminated.
On December 28th, 2023, Mike Pink and Steve Absolom from Interpath Advisory were appointed Joint Administrators of Communisis Limited while Absolom and James Clark were appointed Administrators of Communisis UK Limited, Communisis Digital Limited, and Communisis Data Intelligence Limited (‘The Companies’).
Absolom, managing director at Interpath Advisory, says: “First and foremost, we recognise that this will come as a devastating blow to those Communisis workers who have been impacted by redundancy.
“Our immediate priority will be to work with all affected employees to ensure that the full range of support is available to them.”
On December 29th, 2023, Paragon, a provider of a range of business services including print, mail, fulfilment, and marketing announced the acquisition of Communisis Brand Deployment and certain assets of the Customer Experience side of the business.
The new deal includes the agencies Twelve and Editions and the point of purchase specialist, Vox Group, which expands the services Paragon can offer.
The acquisition of assets of the Customer Experience business is largely to manage over 100 million communications for Lloyds Banking Group.
Jeremy Walters, chief executive officer of Paragon, says: “I’m delighted that we’ve been able to close this deal. We’re now looking forward to releasing the potential that’s been created and to giving stability and a clear path forward to our impressive new colleagues and clients.”
Interpath Advisory says Communisis Group and the Customer Experience business have faced challenging trading conditions for a considerable amount of time as the printing sector continues to navigate decreasing volumes and rising operational costs.
The group has also faced a number of complications due to digital transformation programmes that turned more costly than originally expected as well as The Companies’ US parent, OSG Group, announcing a restructure which would see Communisis Limited exit the group.
Over Christmas staff at the Communisis Merseyside printing factory were sent letters to inform them of their redundancy. The factory was based at Speke’s Estuary Commerce Park in Liverpool.
A letter from the administrators seen by the Liverpool ECHO stated: "This letter is to confirm that your employment is terminated by reason of redundancy with effect from December 28th, 2023. Your P45 will be forwarded to you as soon as possible.
"You may be entitled under Employment Rights 1996 to make claims (up to certain limits) from the Redundancy Payments Service.”
Regarding redundancies, Absolom says: “We will be making contact with Communisis’ key competitors, customers, and other companies who work in this space to enquire about possible employment opportunities for staff.
“We will collate all relevant information, including contact details such as telephone numbers and hotlines, and we will also be speaking as a matter of urgency with the Job Centre Rapid Response Unit.”
With operations ceasing at the group’s facilities in Leeds, Cramlington, and Liverpool, it is speculated 638 employees will be made redundant.
Absolom adds: “We are also liaising with the Insolvency Service in relation to the timing of redundancy payments via the Redundancy Payments Service.”
Interpath Advisory says the transaction with Paragon has safeguarded 581 jobs as well as 25 employees who have transferred to new suppliers over recent months as customers have left the Communisis platform.
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