Failed direct mail firm sold for just £10,000

A Leicester-based direct mail company, Mailbox DM, has been sold in a pre-pack deal for £10,000 to its sole bidder, DMC Encore.

Mailbox DM entered administration on May 30, 2024, following its initial notice of intention (NOI) on May 21. Joint administrators Louise Williams and Paul Mallatratt from Opus Restructuring were appointed shortly after.

John Pye and Sons managed the sale of the business and its assets. The pre-pack deal for the mailing firm was then finalised on June 5, for £10,000 to the Northampton logistics firm.

Operating from Scudamore Lane, Mailbox DM was acquired in 2020 after its parent company, Taylor Bloxham, a historic Leicester firm, collapsed. The collapse resulted in the loss of 150 jobs, but the sale of Mailbox DM saved 21 jobs at the time. 

The pandemic severely impacted Mailbox DM, causing a 60% drop in turnover. To stay afloat, the firm borrowed a £50,000 COVID bounce-back loan and two CBILs loans totalling £320,000 in 2021 and 2022.

Despite repaying these loans, the company faced more challenges in 2023, including £40,000 in debts from client failures, rising electricity costs, and increased wages and labour costs.

The loss of two major contracts in early 2023, followed by the departure of its largest client in October 2023, further strained the business.

Documents seen by indicate that when Mailbox DM went into administration it owed creditors a total of £711,211.