Magnadata made the decision to axe 90 jobs at its Norprint site before going into administration, it has been revealed in an official statement.
Administrators Mazars was appointed as administrator of Magnadata Group, the parent company of Norprint, following it going into administration on July 30.
If there are any vacancies in Magnadata, either temporary or permanent, we hope they will consider applying. There may be some opportunities for example during the initial period of recovery.Paragon spokesman
When contacted by The Standard, a spokesman for Mazars said: “The directors of Magnadata Group had taken the difficult decision to make 90 redundancies at Norprint prior to the administrator being appointed.”
They confirmed that Magnadata Group Ltd went into administration after encountering financial difficulties due to the loss of customer contracts and the ‘inability to reduce its overhead base in line with the reduced income’.
Earlier today, it was revealed that Magnadata International, another arm of Magnadata Group had been sold to international company Paragon Group, with more than 90 jobs saved.
The acquisition was made for an undisclosed sum.
Speaking to The Standard, a spokesman for Paragon said that the priority was ‘to get the business back on its feet after a very difficult period’.
They said that they understood the situation for Norprint employees was ‘obviously very difficult’ adding: “If there are any vacancies in Magnadata, either temporary or permanent, we hope they will consider applying. There may be some opportunities for example during the initial period of recovery.”
They said that once the business was ‘stabilised’ they would look at the long-term future - including options for the current lease and alternative locations in the area.
On why the business had closed and in response to criticism levelled at Magnadata over the way they were treated the spokesman said: “It looks as though Norprint and Magnadata’s financial position deteriorated quite suddenly last week. These types of situations move very quickly and it is always difficult for management to keep everyone informed because the situation changes so fast.
“However, as soon as Paragon took over on Tuesday this week, we held meetings on site with all employees to tell them about the acquisition, how it affected them, and setting out our plans for the future. We will continue to do this as we go forward.”
They said: “We must ensure that customers continue to receive the best possible quality and service, and that we meet their delivery dates. Once the business is stabilised, we can start to look at the longer term”
The announcements today come a week after the news first broke.