Kingman signage assets to be sold

The assets of Kingman Signs and Graphics, which produced signage for customers including Optus Stadium and Crown Towers, will be sold by administrators for less than $200,000.

A creditors report prepared this week revealed a deal worth $192,500 had been struck, just over three years after company founder Vernon Kingman sold the business in December 2020 for an undisclosed amount.

KordaMentha’s John Bumbak and Richard Tucker were appointed as voluntary administrators to the company and holding company Kingman Group Holdings in January.

They recommended creditors vote in favour of the deal, after which the companies would be placed into liquidation.

That move would likely leave the company’s main unsecured creditors – Mr Kingman and wife Dianne – out of pocket close to $750,000, according to the administrator’s report.

It represents a fall from grace for the company founded by Mr Kingman in a family garage in the late 1980s, which produced signage for major projects including Perth Stadium.

Kingman is understood to have employed more than 60 people when administrators were called in on January 29.

The business was purchased by Norman Asch and Todd Grover in late 2020, with the former appointed managing director on acquisition.

Mr Asch departed the business in October 2023, ahead of the administrators being called in January.

The business’s failure was attributed by management to higher than anticipated cost of bringing on new offerings including recent expansions into cladding, digital signage and EV chargers, as well as slower than expected revenue generation from new products.

It also highlighted a downturn in the core signage business attributed to market conditions and a loss of key staff.

The administrators said their investigations found a large operating cost base, which increased with the expansion of services, a low conversion of pipeline jobs and an inability to access timely and accurate reporting information were also contributors to Kingman’s demise.

Management’s inability to reduce cash outflow while incoming cash declined was also highlighted.

Mr Kingman has been critical of management’s handling of the saga on social media.

In a recent conversation with Business News, Mr Kingman disputed management’s claims of a signage downturn, and questioned the logic of expansion into new business areas.

Mr Kingman said his concerns were for the staff laid off as a result of the company’s collapse.

Creditors will vote to wind-up the companies on March 5.