Partner Article

Bradford-based Global MP collapse sees £9 million owed to creditors left unpaid

Bradford-based Global MP’s administrators Baker Tilly have told creditors there is “no prospect” of getting back money owed to them.

Trade suppliers have been hit hardest, with Bradford-based Bahson Colour Print owed £123,026 and Leeds direct marketing company The Lettershop Group owed £92,691 according to Prolific North.

This comes after it was revealed the Bradford direct mail printer left a total shortfall of over £13 million, with a total of £9 million owed to unsecured creditors, with £2.7 million of that owed to the paper trade alone.

Chief executive and sole director Kevin Dunstall acquired Global MP from St Ives Group last September via his Cogent B2B business. It went into administration just nine months later, in July, with the immediate loss of a total of 152 out of 160 jobs.

St Ives is still owed £4.2 million of the £8 milion Dunstall agreed to pay for the business, and is the largest single creditor.

A statement of proposals from administrators Baker Tilly confirms that “there is no prospect of a return to unsecured creditors in this instance”.

Details of the original purchase have also been revealed. Out of the £8 million price, £3 million was paid up front with £5 million deferred over 23 monthly payments of over £200k.

A spokesman for Baker Tilly told Prolific North: “This is clearly an unfavourable result for the creditors of Global MP, however this outcome is not surprising considering such a highly leveraged acquisition.”

According to figures included in the statement of proposals, Global MP made a loss of £3.6 million on sales of £40.4 million in the year to August 2013. This compared with a net profit of £866,175 on sales of £35 million in the previous year.

This was posted in Bdaily's Members' News section by Clare Burnett .