Perth-based printing franchisor Worldwide Online Printing has been placed into administration however its franchise stores continue to operate as per normal.
WA Business News understands that administrators McGrathNicol were called in last week by a group of directors, shareholders and Malaysian investment fund Navis Capital Partners, which bought Worldwide Online Printing 2006.
It's believed the franchisor in administration controls the digital and offset hub operations at the heart of the business. The operations are located in Perth, Adelaide, Brisbane and Sydney.
Comment from McGrathNicol was being sought at time of publishing.
A person close to the matter and who did not want to be identified told WA Business News that Worldwide Online Printing had the wrong assets in the printing side of the business which needed to be corrected.
"The industry is migrating very quickly to digital and its offset printing businesses are not operating at the levels of capacity utilisation and profitability that's required to sustain them," he said.
He added that the franchising part of the business was sustainable and ongoing and that a restructure of the business was being considered with a number of options on the table.
Trade publication Print 21 reported that Rob Dallimore, the New South Wales state master franchiser, was last month appointed the company's chief executive officer, shortly after the departure of the incumbent, Donald McKenzie.
WA Business News understands that Mr Dallimore is currently on route to Perth to conduct a meeting with Worldwide Online Printing franchise owners.
According to Worldwide's website, the company has an annual turnover of about $65 million with more than 85 design and print centres across the country. In WA, Worldwide has 21 stores.
In an average year, the business as a whole designs and produces more than 120 million print items on behalf of 20,000 business customers.
Worldwide was founded by Clive Denholm in 1995 and was with the company for 10 years.
