Works Manchester has filed a notice of intention to appoint administrators.
The printing company was sold by Software Circle (then Grafenia) to PFI Group for £3.165m in 2022.
However, Software Circle said that it had still not received the first deferred payment, which was due on 31st May this year.
“The Company is in the process of taking steps to recover the sums due and will update the market again in due course,” it said in a statement this morning.
“The Nettl Systems management team have been making arrangements with alternative suppliers so that continuity of supply is in place for products available through the Nettl Systems platform to minimise any impact on the Nettl partner network. Migration of product supply has begun and will be completed in the coming days.”
As part of the original acquisition, the companies signed a 5 year supply agreement, under which Works Manchester would continue to manufacture and supply products to its partners.
In its interim results, released at the end of last month, Software Circle said that it had written off £2.46m “due to the reduced confidence of receiving payment of any deferred consideration from Rymack.” [Rymack Sign Solutions trades as PFI Group.]
