An eleventh hour rescue deal has saved 30 jobs at Hillprint the Aycliffe-based HPM&ADDO, which was formed earlier this year when HPM and Darlington-based Addo entered a working partnership, fell into administration last Friday.
HPM had endured years of decline amid tough conditions in the sector but looked to have turned a corner when Addo agreed to join forces with it and relocate to Newton Aycliffe in March this year.
Although the businesses did not formally merge, they brought their operations together under one roof to help inject more revenue into HPM. However, with HPM still reeling from a number of major contract losses – including its longstanding deal to produce Middlesbrough FC’s match day programmes – its turnaround proved an impossible task.
On Friday administrators were called into HPM and the business looked certain to close, with the unfortunate loss of 42 jobs. Previous efforts to find a funder to assume control of HPM’s banking facilities had been fruitless.
But, managing director and former Addo boss Keiran Bayley found a last minute solution by securing the finance needed to enable Addo to acquire the assets of HPM. The move saved 30 jobs across the group and has put the business on a strong foothold for recovery and growth.
Bayley said: “When we found out HPM were in trouble earlier in the year we felt if we put both operations under one roof we could turn the business around and save all the jobs in jeopardy. “It was unfortunate we couldn’t shake off HPM’s struggles and, with significant pressure from the bank, it eventually meant the end of what was a print company with real heritage.
“Unfortunately the business model for staffing levels in relation to turnover simply didn’t stack up. Ultimately we were faced with the difficult choice of making 12 redundancies. HPM was saved from the brink of closure in the late 1990s by then director Richard Mortimer, who built it into what was at one point a thriving success.
He ran the business up until the end of September when he officially retired and declined to comment. Reflecting on the changing fortunes of the business, Bayley said: “Print was a lot easier 10 years ago, but those who have adapted best to the changing market conditions have great businesses now. Those who didn’t are no longer here. It really is that simple.”