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Lynic is latest victim of market squeeze

After 19 years in operation, Slough, UK-based full-service CD/DVD replicator Lynic Technology plc has gone into administration. An increasingly competitive market and a number of significant bad debts are two of the contributing factors cited behind the company’s decision to appoint administrators last Friday.

Martha Thompson, joint administrator and Business Restructuring partner at BDO Stoy Hayward, said: “We have conducted an immediate review of the business and it is with real regret that it has been necessary to cease trading.” Some 140 staff have been made redundant last week when the company's gates were shut. A small number of staff has been retained to help with the administration process.

Founded in 1988, Lynic had become one of Europe's most successful independent CD and DVD manufacturer, packaging and fulfilment house. Though Lynic produced the first ever covermount for a UK newspaper (a Whitney Houston CD for The Daily on Sunday), the company wanted to stay focused in the high-value end of the replication market.

Unique within the CD replication industry, Lynic boasted it was providing the only total media replication facility in the UK. The company was named winner in The Fastest Growing Business category in the regional Thames Valley Business Magazine Awards 2004.

Back in 1991, Lynic had only six people and a turnover of less than £1 million. When it closed down lasy week, some 140 staff were working in a 40,000 square foot plant. Managing Director Jag Gill acquired 99% of the company stocks in 1997. In 2000, Lynic installed its first in-house CD replication line (Singulus Skyline). In 2005, six DVD lines entered into operation. Implementing an aggressive expansion plan, in April of last year the company acquired kdg UK, the Welsh subsidiary of leading independent replicator Austria-based kdg Mediatech. According to insiders, with this acquisition, Lynic may have bitten off more than it could chew.

The demise of Lynic comes barely one month after it threw an expensive New Year bash at an exclusive resort.

Story filed 14.02.07

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