Funding crisis puts 1,700 jobs at risk over Christmas at printer Polestar

 
Billy Bambrough
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Top Gear is one of the glossy magazines that Polestar produce (Source: Getty)

An emergency financial review at printer Polestar has reportedly found the firm could run out of money by Christmas.

According to a Deloitte report seen by the Sunday Times accountants at Deloitte have warned the printer, which produces the Radio Times, Private Eye and Top Gear, will need to take on additional immediate funding.

It’s being blamed on a decline in Polestar’s forecast earnings for next year and could put 1,700 jobs at risk.

The accountant is looking into four options for the company: a debt-for-equity swap and cash injection; a fast-track sale; a sale through a pre-pack administration, or an insolvency.

Polestar is owned by private equity firm Sun Capital Partners.

According to the Deloitte report a poor trading quarter has meant payments to suppliers have been delayed and the firm did not pay £1m of payroll taxes in November.

There have been multiple attempts to shore up capital at the firm in recent years.

Earlier this year Sun Capital refinanced Polestar, borrowing a total of £116m from Barclays and Swedish fund Proventus combined.

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