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Champ Private Equity hires Goldman Sachs to sell Blue Star

BUSINESSDESK: Champ Private Equity has hired Goldman Sachs to sell its indebted printer Blue Star Group after receiving unsolicited approaches to buy the business last month.

Goldman Sachs is assessing the approaches and looking at other possible avenues for sale on behalf of Sydney-based buy-out firm Champ, which bought its controlling 84% stake in Blue Star in 2006 from interests associated with then-managing director Tom Sturgess at a price based on an enterprise value of $385 million.

Senior lenders had agreed to maintain their support during the sales process, Blue Star said. It last year convinced bond holders to roll over $105 million of NZDX-listed bonds, extending the term and providing more financial covenant headroom.

The new bonds, which mature in September 2015, last traded at 1.2 cents per $1 face amount.

While the restructuring provided some breathing space, Blue Star’s trading has not been as strong as had been hoped when it issued a prospectus for the transaction.

In its first-half results, chairman Nick Greiner said earnings before interest, tax, depreciation and amortisation for the year ended June 30 would fall short of the $A53.6 million it had forecast as a “poor trading environment” in the first half was likely to continue.

Blue Star’s sale price is reportedly $A100 million to $A150 million, depending on the shape of the sale, the Australian Financial Review reported, though company sources called that “just speculation” and wouldn’t confirm that the sale could be completed in a matter of weeks.

Blue Star has bank debt of some $A167 million and finance leases of $A43 million. The printing group also owes Champ $16 million via a senior loan, bringing the total owed to $A226 million.

The amended capital bonds were given at $A18.7 million, compared to the value of the pre-amended bonds a year earlier of $A135 million including accrued interest.

Comments and questions

Good luck with that sale Goldman Sachs. I guess that dressing that puppy up for sale will be a hard task. If it looks looks a dog, barks like a dog, smell like a dog, guess what? It's a dog.

Once the offers come in at realistic levels given the poor performance, and even worse outlook, it should dawn on all concerned, that the inevitable must happen. Don't change the CEO (again), don't rely on the existing management to do things differently (again), because they can't, and most of all don't sell a good story to the market about cost reduction and efficiency. It's too late.

Put the dog down once and for all, and let the wider industry flourish. This will also put the Bondholders out of their abject misery once and for all.

Put it this way, no potential buyer will be wanting to rely on Blue Star's / Goldmans forecasts in the IM given how wrong they got it last time around...

The only winner out of this is Goldman Sachs. Firstly, they 'hard sell' bondholders to give up all their legal rights in the moratorium vote for a huge fee.

Then once the moratorium is approved and all those legal rights have been ceded they sucker punch bondholders in the face while they have their hands tied behind their backs.


Whats changed about the Goldman Sachs culture

They have just gone into a trading halt on the NZX...

Finally, after various leaked media reports, it seems the directors have woken up and may be taking their continuous disclosure obligations a bit more seriously.

After competing against these reckless traders for years it is now time to move on. I really feel for the employees most very skilled trades people but led by Bean Counters who think turnover is profit. When you are a manufacturer/printer there are no short cuts to maintain quality and customer service and if you do not charge enough for this service then you make a loss. It is my wish that the Print Industry can now move forward make a profit re-invest in new equipment and ensure our employees of their future with our privately owned and operated companies.

I could not agree more with Printer Bob, the market dearly needs the demand, most of the good people that have done the hard yards within Bluestar will be re-employed, as for the senior management team, I'm sure someone, somewhere needs a hole to be dug. My best wishes go out to all the Mr and Mrs Bondholder who will effectively get nothing, not even an apology! Shame you you senior managers who have never acted in the best interests of the business, you know who you are!

Good one Bob "the printer" - im pretty sure between you and GEON you can put your hand up for setting most of the pricing levels that I and no doubt the Blue Star boys have been trying to follow just to compete

it's been the old problem of too many chiefs and not enough indians - maybe that will change following any buyout....

More like too many YES men, not enough real managers.

Does anyone know how much equity CHAMP has taken out of BS over the last six years? [not including the $100m haircut to bond holders].

$100m in the first year. It did not get re invested. They are not in the business of Investing, it's making money out of businesses that cannot manage themselves. The independant owners are bought out, and the bean counters who know nothing about print move in. They have no clue what to do and bring in more business experts with no print experience. So it goes on, reducing the Indians and increasing the chiefs!

The real problem with all of this is not just the issues raised above, but the affect that this is having on the supply base, staff, and the customers.

If I was a paper merchant supplying to BSPG at present, I would be driving empty trucks to the sites to pick up any of my paper that was not yet paid for ASAP.

If I was a customer, I would be seriously reconsidering why I should support BSPG given the current situation and the likelihood of actually taking delivery of what I had ordered. Especially if it was finished goods in store.

If I was a staff member, I would be seriously thinking about why I have to deal with the day-to-day stress of managing all of this, apart from the obvious fact that I need a job.

The current situation is at best tenuous for all concerned, not pretty, and will only get worse as time goes on.

Unfortunately this is a large scale of what they've done to everyone else in the industry through their anti-competitive ways.

Everybody being so hard on Goldmans, they're only 'Doing Gods Work'

What bank in their right mind would fund a purchase, or any part of it given the past history of these print consolidators? Bank of Scotland lost over $200m with the funding of GEON and now it appears that a few banks and investors will incur significant losses over the latest BSPG news.

The private equity approach to the industry has ended up being a scourge, with funders and investors cast aside in the chaos that has reigned. All of this along with a lowering of prices, standards and craftsmanship all hidden behind a facade of "print management" and "full service approach".

The latest CEO states “It’s got a great business, a fantastic business,” he said. “We’ve got unparalleled market positions on both sides of the Tasman, we feel pretty good about things.”


Sad part is that the contracts will most likely be picked up by brokers offering logistics expertise and some smart "transparent" reporting, screwing margin with no manufacturing overheads to consider as the blind cut prices thinking there is security in turnover...
Yeah Right!

The only way that Bluestar can suvive, as a whole, or in part, is if the management, and the management of the indivdual companies are sacked and replaced with proven perfomers from within the print industry. In any other business, this would have happened a long time ago. A managers job is to show their skills in businness when times get tough, not to use excuses, Sure, times have been tough, but managers and owners of other print companies have still been able to turn over a profit. Why is this?, because they have a vested interest in the company and actually care. You can not have people managing companies who only care about lining their own pockets, it doesnt work, as has been proved by Bluestar. My sympathies to all of the bond holders who will lose money and all the people who work for the Bluestar companies who do a great job and should have been appreciated ( not just words on paper ), for the good work that you do.

This is so true. Mediocre people that ran out of ideas years ago, sitting in Parnell in a boutique, flash office, completely remote from where the real issues are. Dreaming up weird and wonderful ways to package up the same old smoke and mirrors.

As an ex employee of one of the BS business units I have to agree with #15 that the management style employed over the last 10 or so years, by essentially the same tired visionless management team, has let everyone down and there needs to be a good cleanout from the top down to, and including, the individual businesses.
If all of the individual companies are managed in a similar fashion, and I suspect they are, then it is not any wonder that BS is now on the block.
I also can't help feeling sorry for bondholders who have lost their money and the many employees who are waiting apprehensively to find out if they are still going to have jobs when the dust settles.

I am a competitor to Blue Star. We have had to walk away from significant business because of the marginal pricing approach taken by Blue star and previously Geon.

It has been noticable that their low pricing approach has come in 'waves' where suddenly for a period of 2 to 3 months they win every job at any cost. Its happening right now and has been for the past 4 weeks.

It looks like they periodically need some metrics to hold up to someone so they dam the torpedos, grab every job they can and worry about the results later (assuming they survive the latest test).

They may buy better than we do, however not 40% better. There is not 40% to be had anywhere, especially when paper merchants have to carry massive bad debt insurances (mainly due to their exposure to big print groups).

The question most printers ask is how can they do it? Of course the answer is they can't .

I agree with the comment that the pricing drops very low for periods of time. May be they do it everytime it looks like they might go under. That would explain alot. What should I tell my customers. "I cant compete cause Blue Star are insolvent and trying to pretend they not!"

All these comments are true and relevant but didn't we hear the same things last year ? Still BSPG exist. Why? When is someone going to finally pull the plug and say enough is enough?

They have. Read the article above.

This was put out yesterday afternoon - cut and pasted.

"24 July 2012
NZX Market Supervision Announcement
Blue Star Group Holdings Limited (“BLU”)
Trading Halt of Securities
NZX Market Supervision advises that, at the request of the company, it has placed a trading halt on Blue Star Group Holdings Limited Capital Bonds (BLUFC), pending the
release of an announcement to be made by BLU.

I doubt if Goldman Sachs and senior Bluestar management on both sides of the Tasman have contingencies in place for creditors, rent liabilities, not to mention the staff liabilities..... all will be asking the same question, "will I get my money"?

We also need to consider the wider supplier base and how this will effect them, What other print group management team will be able to spend massive amounts of money in Parnell coffee shops, or Viaduct Restaurants?

Expensive vehicles, Golf sponsorship, flash Bespoke offices...... just hope they paid cash.

Peter Warden, no punch line needed.

The trouble Goldman Sach's will have is that they are trying to sell a hollowed out carcass.

Normal machinery asset value that would be expected in a major manufacturing business like Blue Star, has long since been sold off and leased back. The other major asset is 'intangible' ie; goodwill.

Intangible it is, goodwill it is not.

Probably will turn out to be Kalamazoo making a bid, given the sale process is based in NZ. Are they not just the latest in a line of people hoping that size will equal enhanced profit or market power in print? Maybe they're cleverer and can make that model work. maybe they're not.

I see Roger France has just bailed out...

Surely this business is trading while insolvent. There is no way the value of its assets are greater than the value of its liabilities (therefore is is insolvent), yet the directors continue to incur costs and therefore (unless everyone is being paid in cash) unsecured liabilities that it cannot meet.

Is this is not reckless trading then what is?

I see the last sentence in the latest Blue Star announcement to the stock exchange this afternoon more or less confirms that the bonds now have ZERO Value. Go figure.

How can they conduct a sale negotiation in one month? It's not realistic is it? Why the hurry? Doesn't make sense to me.

@ #27 Because the interest bill is piling up so it is in the company's best interests to sell ASAP.

You're right - I was just thinking the bank/bondholders might get a better answer from a wider/slower sale or tender. I'd be buying Webstar if I could afford it. Silent achiever, good business.

They should have listened to Climo's NZ vision off reducing offset and get into digital 5 years ago. It could have been a totally different outcome. The true leaders got pushed and/or driven out. This left to many "yes" men. When trouble started to afraid to move and change.

David made sure that anyone who challanged his vision was put on ice, including Climo himself!

vision in inverted comas - bad restructuring and politics and playing favourites

Christ - does Climo actually know how to spell the word digital?

Is that you Romminger? Trying your best to fly under the radar again.

Well done Phillip Bower and David Jupe, What an excellent job. You must be proud of yourselves. Congratulations, I am sure all the bond holders and employees appreciate your efforts.

David Jupe? Is he still there? Goodness me.

It appears it's "business as usual" and creditors will be paid "as usual" according to Bluestar management.
Something I find very hard to comprehend, as why is it "business as usual" when that style of business hasn't worked in the past and has effectively put them in the position they are in today, very poor form indeed and as most of the posts suggest, it will be the loyal and very competent staff (not the senior management) that will be left "holding the bag" as it is their relationship with suppliers that has retained some continuity of consumable and paper supply - poor buggers!,blue-star-angers-bondholders-as-investment-likely-to-be-worthless.aspx

Something like $150mill of value destroyed by people whose only ideas are about scale and commodities and acting like bullies. $150mill of other peoples money.

The above posts accurately reflect the concerns and frustrations of all bondholders, suppliers, competitors and employees who had no control over the developments that have brought it to its knees.

The boys in their Auck. ivory tower and puppet management in the individual business units are the ones that are solely responsible and hopefully some of them will now be feeling very uncomfortable.

I wonder if anyone has thought to recall/cancel all of the credit cards that management have been thrashing in the last 12 months with gay abandon around the most expensive restaurants and hotels? Not to mention 200k Audis, marquee at the Wellington Cup, Martinborough Wine Festival, Mangatainoka Tui rugby, trips across the ditch, etc., for the elite few.
My guess is that it is business as usual - party on while Rome burns!

You could say we have all been 'J'uped.

The low point for me was word that Blue Star Parnell Office celebrated large the night they got the YES vote from bondholders last year. Maybe a quiet 5 minutes considering the $45mill we agreed to burn that day might have been more appropriate.

Quite galling when David Jupe, only hours before gave an impassioned speech from the floor imploring bondholders "not to vote against the proposal to reduce their returns and give his staff a chance to create value in the business". He went on to say "don't vote on the principal - vote on the hope". What the hell does that tell you about the man?

The man is living in a dreamworld, where the colour of the sky is quite different to everybody else's......

Crickey guys, I'm a printer with BS, and what you describe is very accurate of the management as a whole. It survives on our craftsmanship alone...

I think all involved would agree that the only good thing about the whole sorry business is the determination of the tradesmen and women keeping it all going under very stressful circumstances. It is when the chips are down you find out what your leaders are really made of and sadly they have been found lacking moral fortitude.

I also heard that Champ and BS executive had a big party that night on the viaduct, as if they had won lotto.

200K Audi? Jupe drives a Prosche and Cowling drives a Lexus.

Cars are not a big deal, the inept negative running down of a good business, that's where the peoples money has been wasted. Darren Comrie at Format could have and should have been the NZ Blue Star chief years ago. Still could.

Is that you Darren?

No, it's his Mum.... Mrs Comrie

what crap

If Comrie is that good, how come he is still there?. Bluestar axed anyone who was a threat to the inept management to protect them selves.

Agreed. All that is left is the dead wood. Enough to build an ark.

unfair comrie stayed clear of the circus and runs a good comapny

Sounds like someone is sucking up to the boss to me, or is that you again Darren?
It is too late for that matey. Everyone for themselves now and he certainly wont be worried about what happens to you.

They have both had an easy ride.

Now what ?. plenty of unemployed good quality tradespeople while there will be plenty of Blue star upper management with plenty of hidden cash and contacts and reputations intact because they will tell people they were doing there best under trying conditions . Poppycock. How could they possibly think they were on the right track when really they were living in the past . Another lot of grandchildren and kids who will have nothing to look forward to as it has all been wasted or stashed by corporate greed .It will probably be all be reinvented by these same people just window dressed as something else .Run it into the ground buy, it blame someone else .

Predictions anyone? Just for a bit of fun! Just remember that all those who have contributed to this farce have had inside knowledge and have had plenty of time to set things up for a sweet buy out.

Prediction: Too far gone and taking too long. There is nothing more the management can do - it is beyond them now. Now that the brown stuff has hit the spinning thing they will all be covered in it. There are very few assets and a lot of leases, and not much to sell except a diminishing customer base. Any proposed purchase will be insufficient to satisfy the banks who will not be able to agree the outcome. Too much debt, not enough time...

Administration is my guess followed by liquidation.

Has there been any new equipment purchased anywhere in the NZ bluestar companies I wonder? thats always a tell tale sign

Bet the uninspiring bosses have good exit clauses on top of what they have already taken. Pity the poor staff and bondholders who will suffer.

Prediction. Goldman Sachs back themselves to get more by breaking Blue Star than selling in one fire sale transaction. Webstar - goes first, worth by far the most, sold into Aus. Print Aus - sell Melbourne, struggle to sell Sydney & Canberra. DM Aus - worth more to a DM player than as an addition to sheetfed. Print NZ - the management steal parts of that. Panprint - the people who purchased Rapid obviously didn't want Panprint, and Blue Star for some reason committed $5million to Panprint in December 2011, don't know about that one.

Who bought it. The teflon kid. Very clever. More of the same to come.

Even if kalamazoo make an offer for all of BS - who is going to lend them the money, with the owner off spreading the Lords word and Glen Climo (despite a proven ability to force profit out of a stone) knowing not too much about Webstar or Australian print. And them buying stuff cheap isn't the same as them making a top notch print company in a declining market. I don't think kalamazoo can or should raise the money.

NBR should consider re-posting this article under a current headline so interested parties (bondholders, suppliers, staff etc) are able to continue to update themselves with the evolving and very fluid situation

Has anybody considered the possibility of a left field bid from the Chinese? That really would put the cat amongst the pigeons. What with all of the govt. printing contracts, including NZ Police and school examination papers and I believe also the NZ Budget.

#1 Perhaps they could turn it in to a chain of chinese restaurants and actually be a profitable business. Would suite the existing managers as they are all well versed in cooking. Peking Book anyone?

To #44 and especially #46, there's a lot of behind the scenes shuffling going on at McCollams at the moment. Verrrrrrry interesting thoughts that you two have. Keep a close eye on that one.

At a guess thats management buy gear and then management pop up as a buyer, help the distressed bluestar out. Something like that maybe.

See it Believe it.

Please be more detailed. If you think there is wrong things happening - say so. People are losing big money here, like $100mill of NZ retail invetsors and $100mill of bank debt for a start

There has been certain major peices of equipment changing ownership among certain firms. But as everything is leased, I think it is more a market and efficiency strategy going on. Not so much a sales tactic... Wait and see, certainly is worrying times for some of us

#23. When the bonds were issued, investors paid for a premium return but with a risk, they were unsecured. Anyone who bought these bonds could have invested else where but wanted to make more money than was offered any where else, these people took a risk and lost. No one forced them to make that choice.

Perhaps before making your next post Mad and Sad you should look a little further for the facts

Interesting. Behind the scenes?

Not too sure how any of the current management could expect to be supported by their local existing clients in any unseemly buyout, as they, clients, will by now know what managers have inflicted on staff, bondholders, creditors and other printers. That would be a very risky exercise indeed. Everything about the name BSPG has been irrevocably tarnished.
I wouldn't be blowing my trumpet for any one of them to be taking the reins and in any case they all had their chances to shine and failed.
The sooner they, BSPG, are gone, and some sanity returns to the business of printing and we all get a fair cut of the cake, the better.

Feeling proud of yourself Mr CFO?

Why so personal people? Naming a few of Blue Star management and Execs out of a whole heap of real decision making organisations, Champ PE, Banks, Goldman Sachs. Sounds like a few of the same people with very big and very personal axes to grind.
The "armchair" commentator may be a tradition but not a particularly helpful one and certainly not in this case! Belittling everyone including customers reeks of ulterior motivation. If you have a positive suggestion as to how to address systemic failure within the industry, speak up. Those of us who are keen on preserving and furthering the industries reputation would love to hear from you.

In case you hadn't noticed Considered this is personal for many people. Losing your investment nest egg or your livelyhood is very personal indeed. I think people have a right to vent their frustration a little when they feel let down to this extent by owners and managers of businesses.
I don't agree at all that this is the forum for improving the industry. There are plenty of other places to make these suggestions.

There are no positives to focus on here. Management have consistently made representations to investors and the NZX and have consistently failed to deliver every single time. Hence the profit downgrades, broken covenants and failed initiatives to stop the rot.

This has been a sad saga that began with the issue of the bonds and the MBO. They have failed investors, staff and customers but also themselves. Too much debt, no talent, no integrity, but most of all too much denial for far too long. If there is another MBO with the same people the result will yet again be the same.

From the moment the share holders sold to Equity, the train switched tracks and the ensuing wreck was inevitable. The shareholders which included senior management must have known that the debt levels were crazy.

Since then senior management have been in denial, constantly reassuring the market of an increase in EBIT, while actively taking a marginal pricing approach. For this you can blame management directly.

The hidden cost of their approach has been the losses incurred by good companies who could not compete. Its very personal to them.

As for Champ, they were undone by greed and timing. Its 'live by the sword, die by the sword for them'.

Perhaps you could suggest one yourself. I doubt it though, because if you could, as you obviously are not an armchair commentator, you would have done so. I am interested to to hear your solution to the problem though. Please grace us all with your informed opinion.

Took the money, looking after number one. Bondholders and workers not my worry.

Can't spell Climo, let alone digital!

Yes there has, digital at Printlink, five years too late!

Any other GMs out there that would like to anonomously nominate themselves as(should have been)CEO of BSPG?

remember these are good people part of our industry trying to do there best they just got caught in the GFC. Wagu beef for lunch anyone

Almost exactly one year ago, the NZ CEO of Blue Star was quoted in ProPrint Magazine:

"It has been a challenging period for us, but thanks to our bondholders, Blue Star is now poised for bigger steps."

He added: "Now that we have crossed this major hurdle, we would also like to assure our bondholders, customers, suppliers and our people that going forward it will be business as usual at Blue Star Group New Zealand. In fact, we’re now looking to emerge stronger coming out of this scenario and follow our visions of growth in the years ahead."

Speaking this morning, Jupe said: "Our customers have been loyal and our suppliers have been fantastic. It is all about getting on with life." But he conceded that it had been a difficult month. "My team has felt the pressure over the past little while."

Key words: Bigger steps. Assure. Going forward. Emerge stronger. Visions of growth.

Yeah right.

deceive, trick, cheat, con, beguille, delude, swindle, bamboozle, hoodwink, take for a ride, pull a fast one...

Anything fit?

Look at the bigger picture...
It's not just the employees within the BSG that are or have been effected within the printing industry, there are so many other people's lives that have been effected over the years through this negligence of trading that some businesses have been getting away with.
Everyone understands that trends are changing and not everyone is moving with them, but all these trends margins are disappearing as quickly as they start.
In small businesses, although with minimal overheads, they are leaner than what they should be and too much is put on individuals just to compete and break even, trying to ride the wave.
How many companies are really on the brink though? Or simply have just been worn down for too long because they have to justify their losses, whereas some others can just p*** other peoples money against the wall.
Then to top it off BSG go and win the Government tender by under cutting only to keep running at a loss. If the Government knew the truth, that they were actually helping people lose jobs, adding stress to all small print business owners, stopping industry training and the future of the printing industry by supporting those that are running at a loss but still keeping some fat pockets full and wining and dining with the average mums and dads trust.
Not to mention other work they are winning on 'margin'. Corruption, lies and deceit are a few words that come to mind.
Print is an art!!! Not a f*n commodity...
Shame on you involved in this!!! I'm sure you'll crawl into someone else's business and assure them of how much you did simply because you won't admit that you ARE liable.
Love your work BSG board and management! Why don't you make sure you personally announce to all involved how hard you tried with everyones best interest at heart.
The worst thing is, the management will buy portions of the business out and the same old crap will happen with a few holes left in more than a few pockets.

What a load of cr*p, stop being so bitter and twisted, there are a lot of principled people still working and doing their best for their company and their clients, in a very difficult market. Take your opportunities to have a go at individuals in the senior roles whom you have already damned. But get a grip, there are still individuals turning up day after day trying their best to do a job for themselves and their families as well as the clients. They neither seek nor deserve all this venom. Try and keep it real!

Print Market decline >10%
Christchurch Earthquake impact - major

Page 137 Prospectus 14 July 2011
Prospective Segment Analysis FY12 NZ Print
Business Unit EBITDA $10,728m

NZ Print FY12 Actual EBITDA > $12million

And finally some common sense prevails!

Finally some facts. The truth will come out eventually and show the local businesses are well run at the ground level and full of committed good people doing a good job. When the dust settles most of the stuff written here will be shown for what it is, bitter tactical grumbling from parties with their own interests at heart.

I am sure we all agree the 'employees' are also victims.
I have to give the senior BS boys, and girl, some praise though, they have been brilliant at telling everyone porkies.

What a joke. EBITDA is earnings before interest, tax, depreciation and amortisation! anything else you want to throw in?

Guess what. Small print company owners don't quote EBITDA. Thats because they have to pay for their machines, fixed assets, tax and interest to financiers.

Who knows what figures they have buried in amortisation! This is Corporate accounting BS!

There is a new financial metric in town. Its called the bottom line, try quoting that!

"Um ... we lost $10 million instead of $11 million ... YIPPY!

BSG are not only kidding the bondholders, they are kidding themselves.

EBITDA = Operating Profit
Operating Profit - controlled by local NZ Management
EBITDA - delivered more than itemised on Page 137 Prospectus FY12
Interest, Depreciation and Amortisation - not controlled by local Management but Champ PE
Looks like employee has you pegged "tactical grumbling with your own interests at heart"

This is all very academic, and whatever the CFO puts up as a financial argument at the end of the day is simple historical cost accounting. In a nutshell, it has already happened. Despite the NZ EBITDA success or otherwise, BSPG as a group is in serious trouble, as they themselves acknowledge. They have run as a group, and will be judged as a group, and on this basis they have now lost $135m of Bondholders money, on the back of which they improved EBITDA by a minuscule amount, as well as the shortfall in the rest of the debt. Well done.

The immediate future will determine their success or otherwise once and for all. This will determine the value of their efforts as well as the value of the company. Only then will the true facts emerge, along with all of the excuses - such as "the New Zealand business was profitable". Ho hum.

It doesnt much matter to me who is at fault, management or Champ PE. Maybe it has nothing to do with management, the result is the same.

Warren Buffett famously once asked, "Does management think the tooth fairy pays for capital expenditures?"

the tall poppy machine is as sharp as ever,and everyone wants to turn the handle.Pause and consider that the decider has and will be the GFC good people mostly, good idea but not many could have changed the outcome or were listened to

I want to know why BS didn't offer to do this free of charge like most jobs! grrrr,sos-print-snatches-major-govt-contract-from-blue-star.aspx

I just can't understand how all those stupid customers, stupid suppliers, and stupid staff haven't realised how stupid Jupe and his team are. Increasing customer satisfaction and increasing market share and achieving financial targets is just not consistent with Gripeville gossip and is totally unacceptable. When will these people learn?

This is pathetic.
Calling customers stupid, suppliers stupid and staff stupid
You must have a real axe to grind.
Gripeville Gossip - that's exactly what it is.
How much of the gossip has come true?
The bitterness continues to show through and I really think people are getting tired of this cr*p

You are off the mark and you need to pull your head in. There are many passionate employees in Blue Star that care deeply about their customers and suppliers.

Your view is insulting to staff, customers and suppliers of Blue Star.

Keep your cancerous views to yourself.

Do they have a corporate helicopter?

The reality is that there is no way out for BSPG. The customers are already trying to flee (we have had 4 in 3 days contact us as an option to takeover and all are contract clients), and in addition the suppliers will require guarantees from the Banks to support through the sale process. There is nothing left but to manage an orderly breakup of the business, either via administration or quick Goldman Sachs action. I fear that the former will be the case as the customers look for other options and the Goldman Sachs process lumbers along. Very sad situation indeed.

You can be sure that whoever picks up the contracts will want to ensure that the customers' needs seemlessly continue to be met, so I would be surprised if any were lost just because of a possible name change. Contracted work means just that, under contract. Clients can not just walk away because of rumours and scuttlebutt. In the meantime it is business as usual at the coal face for staff.

Forget rumour and scuttlebutt. The companies own statement of position is as bad as it can get.

What responsible client or supplier is going to ignore that? Why would they? At the very least they need to ensure that they have protected their position as well as they can.

Why also would anyone believe that they banks would allow unsecured creditors to receive any recognition of trading debts in a sale process. That would be extraordinary.

When the sale process is concluded, the unsecured creditors will get the bad news. In the meantime BS needs to keep them trading. A carefully worded release from the CE to mainstream media should help.

They hope the suppliers and customers are as gullible as the bond holders.

Suppliers should be careful about Bluestar purchases in August. If Champ gave Goldman Sachs a month at the end of July and if no quick sales happen then how long do the banks give the business before receivership? At what point is the business incurring liabilities that they can't be sure will be paid? The extra enthusiastic 'great business' comments by the CEO also makes me suspicious.

Meet the team. No words needed.

Scroll down to see the clowns.

They won you idiot

Did They?

I get it. One good guy in that though. Paul Jacomb. I worked with him and he shared the same frustrations as everyone else at Mccollams but actually had the balls to speak out. As with everyone else who tried to move the company forward, he "moved on". Anyone else seen that movie Waynes World.

Forgive me if im wrong, but didnt he believe in Blue Star enough that he came back???????

Bring on the clowns.

I don't think the boys from Heidelberg will be wanting to show their faces again with BS clowns any time soon. In fact I suspect they will be busy working out how to get their machines back!

None of this negative chatter is helping anyone. I am trying to be positive and keep my staff busy and on their toes by shuffling key personnel around on an ever faster cycle so that they do not actually get up to speed with their ever-changing responsibilities. It's a bit like shuffling the deck chairs around on the Titanic!
Is the Blue Star getting dimmer or do I just need new glasses?

you just have steemed up glases, but we all know why, and that it has nothin to do with printing.