Business News

Quebecor World Inc. Announces that its UK Facility is Being Placed into Administration

Tuesday 12. February 2008 - Quebecor World Inc. (TSX: IQW) announced today that its UK subsidiary, Quebecor World PLC, based in Corby is being placed into administration. Quebecor World has made significant investments in this web offset facility in recent years.

These investments combined with important employee and management contributions were designed to turn around this business but these efforts have been unsuccessful. The UK facility has been cash negative since the loss of an important contract three years ago. Given the overcapacity in the UK printing industry, challenging market conditions and reduced demand for print in the UK market, the Company does not believe the situation can be improved without further investment and significant restructuring.
As a result the Directors of the Quebecor World PLC having regard to Quebecor World PLC’s current financial position, have decided that it would be in the best interests of its , employees and creditors to appoint Ian Best and David Duggins of Ernst & Young LLP as joint administrators of the Company (the “Administrators”) effective on January 28, 2008. Following their appointment, the Administrators will consider all options with regard to the way forward including a possible sale of the business. The Administrators will provide a further press release shortly.
The Corby facility is located in the central UK about 70 miles north of London. It currently employs approximately 290 people and produces magazines, catalogs and specialty print products for marketing and advertising campaigns.
This decision is not related to Quebecor World’s filing for credit protection in the United States and Canada and has no impact on its other European facilities. The Company’s other European facilities continue to operate as usual serving many of Europe leading publishers and retailers.