Paragon announced on 29 December 2023 that it has acquired the Brand Deployment business and certain assets of the Customer Experience business of Leeds-based Communisis which collapsed that week with a net loss of 638 jobs across Communisis’ Leeds, Liverpool and Cramlington, Northumberland sites. 581 jobs have been kept thanks to the Paragon acquisitions.
The Brand Deployment business provides marketing services to major brands. The Customer Experience business provides inbound and outbound multi-channel customer communications services for large UK brands, including Lloyds Banking Group. According to reports on BBC News, administrators have blamed the collapse on ‘challenging trading conditions’ that has persisted for some time and which ‘included declining volumes in the wake of the emergence of digital technologies and increased costs of production’.
Paragon says its acquisition of the Brand Deployment business creates new client relationships and extends some existing ones. The deal includes the agencies Twelve and Editions and the point of purchase specialist Vox Group which expands the services that Paragon can offer existing clients. The Brand Deployment business employs more than 300 people and has presence in over 20 countries. It has expertise in permanent and temporary point of sale, digital displays, brand merchandise and print.
Paragon’s acquisition of some assets of the Customer Experience business is principally for the delivery of services for Lloyds Banking Group. This will see Paragon managing over 100 million communications, to and from the bank’s customers annually.
Jeremy Walters, CEO of Paragon said, ‘I’m delighted that we’ve been able to close this deal. We’re now looking forward to releasing the potential that’s been created and to giving stability and a clear path forward to our impressive new colleagues and clients.’
Stephen Absolom, managing director at joint administrator Interpath Advisory, said, ‘First and foremost, we recognise that this will come as a devastating blow to those Communisis workers who have been impacted by redundancy.
‘Our immediate priority will be to work with all affected employees to ensure that the full range of support is available to them.’
He added that administrators would also make contact with the firm’s key competitors, customers and other companies with regard to possible employment opportunities for staff.
Communisis had a major investment in HP inkjet printing technology and Hunkeler paper handling, investing in six new lines in early 2022, at its Speke, Liverpool, and Leeds sites.
