Graphicus Closing Down

[Phree]

I am really sad to break this news on here - Graphicus is closing down. The details are on Glenda's blog if anyone wants to know more.

[budgie]

Absolutely gutted by this news. Very sad day for Glenda and the whole team.

[Princess4Wiz]

So sorry to hear this awful news, Phree. I hope that Glenda and her hard working team manage to bounce back very soon.

[LynneH]

That's a shocker! It's so sad for everyone involved.

[Rentochops]

That's a shocker! It's so sad for everyone involved.

Certainly is - hope she can sell her products elsewhere - also hugs to Phree as I know you loved designing for the team xxx

[Dips]

The link is here (http://glendawaterworth.com/2010/12/10/a-sad-day-for-graphicus/#comments) if you're not sure where to look.

Obviously this is an incredibly sad and stressful time for all involved, and I know it is not a decision that anyone takes lightly. However, I have to say I feel uncomfortable that the way it has been written, implies that the decision to close was partly swayed by the fact that this passes the cost of redundancy onto the tax-payer and that plans are already in hand to start a new business, unburdened by this debt. I don't say this lightly myself as I know it will not be well received, but that is the inference that I felt was being made.

However, I do wish everyone who has been sadly impacted by this the very best for the future and hope that new opportunities come to them very soon.

[suban]

This puts employees in not so brilliant a position as it would be if there was a normal redundancy! Having been made redundant through insolvency, and also through "wastage" I can personally vouch for the difference. If you are made redundant through insolvency:

1) The rate of payment is capped.
2) The payment is not paid until the end of the redundancy period eg If you are entitled to 10 weeks redundancy payment you will not be paid until the end of that period, or when you start work again, whichever is the sooner - thus if you get another job after 4 weeks you only receie 4 weeks redundancy. If through wastage you get the payment straightaway, and you do not pay it back, even if you start a new job the next day.
3) You must sign on for Jobseekers allowance, but will not receive any payment until the end of the redundancy period as the law states you cannot receive JSA if you have received or are DEEMED to have received redundancy pay. So if you are entitled to 10 weeks redundancy pay, then you will receive NO money for 10 weeks. If you are single or the breadwinner you MAY be entitled to a crisis loan.

So sorry for those affected - especially at this time of year when money seems to go out at double the rate it comes in.

[Victoria]

This is a horrible thing to happen to all involved, and I feel very sorry for them. Just makes you wonder if not appearing on C&C made a difference to the business. I can't quite understand though how someone is allowed to start another business after insolvency. Doesn't make sense somehow!

[suban]

It depends on what happens athe creditors meeting. If all debtors are paid, then ok to start up. If the people are insolvent then they cannot start up again. They are voluntarily insolvent, so they can start up again, and do this over and over again.

[sheilaj]

I see what you mean Dips, I don't know the lady but that does seem wrong to me too.

[LoobyLou]

I thought the only way you could start another business whilst bankrupt was if you were a limited company, as the debts are limited to the company and not an individual. As Graphicus was Graphicus Limited, that will be why they are allowed to start another business. If they were not limited they would not be allowed to do so, regardless of whether or not they made themselves voluntarily bankrupt.

Whatever the legalities though, we should not forget that these are real people who have been put out of work a fortnight before Christmas. My heart goes out to them.

[craftycat]

having trouble posting around here!
Really, really sad for Glenda and the team. I'm a great fan of Graphicus and a member of the Guild, a few months to go for my membership I think so I will lose out there. that is nothing compared to what the employees are going through though

[northern crafter]

l wish them all the very best for the future

NC

[ob1]

How awful for the employees. I suppose there's some fiscal reason that redundancies often fall before Xmas, but it makes the blow so much harder to bear for those losing their jobs.

[hobbit]

It sounds to me like they can't afford to pay the redundancy payments, so either way, they will be insolvent. But, if they don't declare the business insolvent up front the government won't step in to top up the payments to the staff. Which means they would lose out with what they come away with.

It's a wretched situation all round, but I have to say I'm not totally surprised. Every market has a saturation point, and I think sadly crafting is just about there. Glenda's stuff was really good quality, but a bit too expensive for me. So when you also consider that many people have significantly less disposable income now because of their own job/financial situation... not good news.

:(

[Granny Penny]

I understand where you are coming from Dips and it is a difficult position. It sounds as though the poor lady who runs the company was trying to do her best for the employees in very difficult circumstances and has no doubt been advised as to the best way to go. It reminds me a little of tax avoidence, i.e., although it feels a little uncomfortable it is a perfectly legal way to behave. I would feel that the way this has had to be dealt with is a perfectly legal if slightly uncomfortable way to end the business. If it means that the tax payer is picking up some of the cost but this enables the business to restart thus employing people in the future then it is probably a good investment.

[essdeecee]

I have never bought from Graphicus but always admired Glenda's work on C&C and her honest approach to writing her blog. I did note that they sold their home and are renting for a while, often a sign that all is not well. I am also a tenant, as many more are these days. Something that rests very easy with me for all I've just said.

All the very best to all concerned - talented people will find ways to carry on - use it as a springboard rather than a dead end.

[Spendsloads]

What a shame. I don't have Sky, so have never had the chance to watch Glenda on C&C proper, but inspired by many of you on the forum, I started buying some of the Graphicus stamps earlier on this year and found them to be very good quality and I also joined the Guild. Like Dips, I don't feel particularly comfortable with the way the announcement has been worded either, but presume Glenda was probably left with Hobson's Choice. Such an awful time of the year for this to happen too and also quite unusual, since most retailers usually manage to get through Christmas - I wonder if the bad weather up Barnard Castle way was just the last thing that tipped them over the edge?

[dita]

I am saddened to hear this news, however I agree that it appears to have been handled quite badly. It always angers me when organisations make themselves insolvent and then hand over the reponsibility for redundancy payments to the government. The decision to wind up a company does not happen overnight and no matter how difficult it might be, Graphicus ought to have held funds back to meet their legal (and moral) responsibility to their staff. I hate to think of people being put out of work and especially at this time of year. It is even more galling when the employer cheerily tells of starting up again under a different guise. I think it is quite immoral. I've never been to Barnard Castle but I imagine it was not a huge empire and cannot imagine why the company cannot give their workforce (which must be very small) their due entitlement. It disgusts me. While I have been an admirer of Glenda's work in the past I can't see myself rushing forward to buy any of her products again.

I work for a small registered charity and it is a limited company by guarantee but our business manager has slowly and steadily built up reserves over a long period of time to cover statutory redundancy pay for all of our staff. There has been many a time when we have needed to dip into the reserves to replace vital equipment or to pay for extra staff costs to fund additional support, but we haven't because we need those reserves in case our public funding ever comes to an end. I'm probably being quite hard on Glenda when I don't know the full facts but I do feel the first responsibility should be to the staff and she shouldn't even be thinking of starting up again while there is still this unfinished business.

These are diffiuclt times for us all. I am not spending as much on craft these days and I expect there are a lot of people on here who are having to cut back as well. I always found that Glenda's stamps, while beautiful, were overly expensive compared to other stamps. When she stopped appearing on C&C that couldn't have helped either. It makes me wonder how many other craft closures we will be seeing in the next few months.

[lee]

I was about to come upto renewing...what a shock. Scraptrends and now this...these times are so difficult!

[Purplepig]

It is sad news for all concerned and I must admit I too think it is inappropriate to be talking about a new business plan at this stage.

I was only thinking last week that joining the Guild wasn't the best idea I've ever had, the newsletters haven't appealed to me at all and I haven't been even slightly tempted to buy anything from them :sweat: which is most unusual for me, but probably because they are quite pricey as someone else said.


I do hope everything goes as well as it can for all those involved in the closure :nod:

[Rentochops]

I agree PP!

I don't think Glenda has done anything wrong, sometimes insolvency is the only option, she's not a cowboy builder running away from her customers - I think her blog explains things well and if she can't pay the redundancy well what is she expected to do? She didn't even have to give any of this information, I think she is being very open about the whole thing, many companies (and big ones) don't tell you any of this.

You don't expect your company to fail and most small businesses do not have a fund for redundancy! In Jersey there is no statutory entitlement to redundancy pay - when Woolies shut down the workers over here were going to get nothing, only protests eventually made the Jersey States cave in!

Incidentally Dita (and apologies if you know this) a company limited by guarantee is a much more straightforward process. The company will have limited liability - the liability of its members being limited to an amount not exceeding £100 which each member undertakes to contribute to the company's assets in the event of it being wound up. As no shares are issued as the members agree to contribute a membership fee or subscription, and normally have equal voting rights and elect a board of directors. Any profits (often known as "surpluses") are not distributed as dividends, but may be used to support the activities for which the club or association is formed. This is fundamentally different to a limited company.

[Phree]

As quite a few of you know, I am one of Glenda's Design Team. I am also a long standing customer. I have met Glenda and her team at Graphicus on many occasions.

And the point of me saying all of the above:

Firstly, on Friday morning several hours before her blog post I received the courtesy of a phone call from Glenda to break the news about Graphicus to me. I was told some things that do not appear in Glenda's blog post. Now without going into detail Graphicus as a business has suffered losses which were totally outwith their control. Remember they are a wholesaler of product to other craft outlets.....so use your imagination please.

Secondly - on my many visits to Graphicus I have never seen a happier team of workers - you don't get that kind of atmosphere in a workplace where the boss does not care about the staff. All of Glenda's staff were treated like family and freinds. So anything Glenda has done I do believe it was done with the interests of her staff at the forefront of her mind.

Thirdly Graphicus has generated wealth for this country, providing jobs for people, paying taxes etc, and even as an exporter of goods abroad and has done this for some 10 years. Please do NOT confuse the closure of Graphicus with that other recent, and well discussed on this forum, failure of a crafting business which left a long string of disappionted customers in their wake - customers who never received the goods they paid for and who had no hope of receiving their money back. As recently as Thursday I saw posts from happy customers on the Graphicus Guild Yahoo Group saying that their order had arrived that very day. Last night and today, the posts are very different - devastation that Graphicus is no more.

Finally, if anyone of you were to loose your means of making your living - would you not also turn your thoughts to the future and try to think what you are going to do about that? It's only naturaly that Glenda and Adrian have to think about what options are available to them in the future.

To close, please do not condemn what you do not know about, because you do not have all the facts at your disposal. Please believe me when I say that my experience of Glenda has never ever been other than the feeling I was dealing with a lady of high character who truely cared that her business was run morally, both in the way she treated her customers and her staff. On a personal level there have been time when Glenda has shown me personally by her actions towards me that she is a truely caring person.

[craftycat]

Well said Phree. Whenever I've had to contact Graphicus about something they have gone out of their way to help. Should point out that I have never had a problem with their services but have needed extra information about a product. I must admit that, once the P&P was changed to free for all orders over £15 that the Graphicus Guild membership wasn't quite such good value but the welcome pack in the first year probably meant I got my money's worth, even if I do lose out on three months newsletters.

Lots of people will be losing out, the employees more than the customers but I really do think Glenda has done her very best under difficult circumstances.

[budgie]

I will lose out on over a years newsletters cos I took advantage of their offer to renew early to save money when they put the price for Guild membership up by a fiver in October. My membership is paid up until April 2012! I expect they knew even then they were in trouble and were trying to get money in to keep going. As I had no intention of ending my membership of the Guild, I paid up early to save a fiver. Wouldn't have bothered if I had have known then what I know now. So much for saving money.

[icebubble]

I think it is a great shame to hear that Graphicus has had to close and wish all the very best to Glenda and all the staff involved in the business. What an awful time of year to have such an uncertain future and to lose your income.

I am in the same situation as budgie in that I took advantage of an offer to renew my Guild membership early so paid up without hesitation as I enjoyed being part of it. I think Glenda said on her blog that she will be contacting Guild members so may sort something else for us but if not at least I got a lovely A4 sheet of stamps that cost more than my renewel anyway.

As someone that is also going through an awful time at the moment I am sure Glenda must be having a terrible time and is trying to keep things together and do the best for herself and all of her employees which I'm sure are also her friends. My heart goes out to all of them.

[LoobyLou]

Budgie, didn't you too get the offer of a Sheet of A4 stamps when you renewed your Membership?? I know I did and the sheet of stamps I received was MORE than worth the cost of the membership even if I never had another discount offer nor another newsletter. I'm sad I won't be getting anymore newsletters, but I don't feel I have been done out of anything as the sheet of stamps covered the cost of the renewal. If your circumstances are different I apologise

I have only ever been treated with kindness myself with Graphicus. Judith in particular goes out of her way to be helpful and sort any problems and when I had an issue with a damaged Big N Juicy they had one in the post to me BEFORE they had me return the faulty one simply because I said I needed it for a project I was working on. Compare that to Create and Craft and QVC who NEVER send out replacements before they get the originals back in their warehouse, which seems to take forever.

[craftycat]

I didn't realise you got goodies when you renewed Guild subscription as I only joined this year. Hope maybe in the future the Guild may start again. Always a risk with subscriptions that the business will go under furstrating for those of you who have paid so far ahead though.

[Rentochops]

I think it is a great shame to hear that Graphicus has had to close and wish all the very best to Glenda and all the staff involved in the business. What an awful time of year to have such an uncertain future and to lose your income.

I am in the same situation as budgie in that I took advantage of an offer to renew my Guild membership early so paid up without hesitation as I enjoyed being part of it. I think Glenda said on her blog that she will be contacting Guild members so may sort something else for us but if not at least I got a lovely A4 sheet of stamps that cost more than my renewel anyway.

As someone that is also going through an awful time at the moment I am sure Glenda must be having a terrible time and is trying to keep things together and do the best for herself and all of her employees which I'm sure are also her friends. My heart goes out to all of them.

You are now a creditor of the company but I am guessing Glenda will look after the current members anyway.

[icebubble]

You are now a creditor of the company but I am guessing Glenda will look after the current members anyway.

I'm not worried to be honest ROC as I was more than pleased with the stamps I got :nod: and just think the whole situation is such a shame for all those involved.

[fabyon]

It's pretty sad news, so sorry Phree as you were really enjoying being part of DT. It's a sign of things to come for several medium and small size companies as the ripple effect is still happening from the crunch two years ago. Also the paper craft trend (cardmaking [uk] and scrapbooking [usa] that started from the beginning of the Bubble in 1995 with the last section of baby boomers and my generation ( gen X ) after 15 years, well, we're seeing the back of it now.

Generation Y and 'Me' are not interested in paper crafting according to some latest demographic research (google scrapbook news), that will probably change again in 10 years or so when they get older. What has come as a really odd bit of news is that the last generation ( gen txt - 15-25 ) are really getting into knitting and novelty object making. Something some bigger companies have cottoned on as you can see by more magazines being released about crochet, knitting, and crafting in general.

The problem with such a young demographic is that they don't have the staying power and surplus of disposable income an older generation can afford to keep doing their hobby. However, these trends are just that, trends which can really change at a whim of the market but it's a always a good indicator for changes that can happen to small businesses in these difficult economic times ! :(

Obviously Graphicus have had other commercial issues and since they had a very specific niche market weren't affected as much until something else happened, unfortunately. My heart goes to Glenda and her employees, it couldn't have happened at a worst time and such a sensitive period of year ! :(

[suban]

Hopefully the resurgence in make-do and mend, and recycling may keep the crafting industry going, especially if Kirsty keeps going with her make it yourself programmes.

[Granny Penny]

That is a fascinating analysis Fab.

[kitten_with_claws]

It's pretty sad news, so sorry Phree as you were really enjoying being part of DT. It's a sign of things to come for several medium and small size companies as the ripple effect is still happening from the crunch two years ago. Also the paper craft trend (cardmaking [uk] and scrapbooking [usa] that started from the beginning of the Bubble in 1995 with the last section of baby boomers and my generation ( gen X ) after 15 years, well, we're seeing the back of it now.

Generation Y and 'Me' are not interested in paper crafting according to some latest demographic research (google scrapbook news), that will probably change again in 10 years or so when they get older. What has come as a really odd bit of news is that the last generation ( gen txt - 15-25 ) are really getting into knitting and novelty object making. Something some bigger companies have cottoned on as you can see by more magazines being released about crochet, knitting, and crafting in general.

The problem with such a young demographic is that they don't have the staying power and surplus of disposable income an older generation can afford to keep doing their hobby. However, these trends are just that, trends which can really change at a whim of the market but it's a always a good indicator for changes that can happen to small businesses in these difficult economic times ! :((

Although.........i think a lot of young people are interested in papercrafting, particularly if they come from a family where it is already a hobby! My DIL for instance, made all her own Xmas cards this year (her mum makes cards) & my own girls definitely appreciate hand made cards over shop bought ones!

Where their spending habits differ though, is two-fold I think - certainly, they don't have the spare cash to spend huge amounts on craft goodies but also, they are part of the 'download generation' & are more likely to perhaps go more down that route with their crafting, so digi stamps & papers you print as you need? (Not only a cheaper option but something they are used to already doing with music, movies etc. anyway?)

[Rentochops]

Good point Kitten, I mean look at the success of Moonpig (Guernsey company) the service they offer is an easy concept but the guys love it at work as they often forget birthdays, they charge £11 next day delivery! So digi everything is where it's at! Kirsty is doing what Jamie did for cooking, making craft cool! Can only be a good thing, my sis in the US says scrapping is bigger then ever there as is homemade everything! Knitting is huge again, poor card making seems to be a second cousin, must admit I am branching into other crafts for a change, I think it's good to mix it up and if I had a craft shop I would probably cater for a variety of crafts atm.

[Phree]

Just an update for those who are Graphicus Guild members - watch your letterboxes - my bad - I forgot to post that your membership has not gone down the tubes, so for those of you feeling ripped off, it looks like you don't need to feel that way after all.

[Paul Thomason]

I am sad to say that you will be seeing a lot more craft companies close over the next two years, it is simply a case of supply and demand and whilst it is true to say that those who survive will be offering better prices / services I cant help thinking that when the economy recovers we will be left with far less choice especially with regard to product quality.

Paul

[budgie]

Thanks for the info Phree. I didn't feel that I had been ripped off, as Looby says, we did get a sheet of stamps. However, I was disappointed to think that the Guild was no more, because I joined that (and renewed early) not for a sheet of stamps (I can get them cheaper elsewhere) but because I wanted to be part of the guild and learn from a very talented lady, whose work (and products) I admire. Since Glenda is not on tv anymore, I felt that joining the guild was a good way of continuing to learn from her. I was gutted at the thought that the guild would be no more, so I am thrilled to hear that this is not the case.

[suban]

May be a lot will go down the pan because of people buying through the shopping channels, and by asking them to show a greater range of crafting we could indvertantly be putting more businesses at risk.

[kitten_with_claws]

May be a lot will go down the pan because of people buying through the shopping channels, and by asking them to show a greater range of crafting we could indvertantly be putting more businesses at risk.

I don't think the shopping channels are necessarily to blame Suban - supply & demand can also be interpreted as being able to supply what the customer demands....!
Just look at the success of Ranger stuff & Tim Holtz labelled stuff in particular - pushed constantly in the magazines (try finding a 'winning entry' of something that doesn't incorporate distress inks or grungey images to a degree for example!) - the mags are as much to blame for setting the trends & steering people in a certain direction as anybody else! (And we all know the majority of people don't take much 'steering', as they're pretty sheep like generally....! lol)

Sky high rents on bricks & mortar shops are crippling many small businesses (we've seen several go in our town, to be replaced by pound shops or charity shops on short leases etc.)
Having to employ vast numbers of people (in comparison to what is actually needed to run the shop!), to cover not only sick leave & holidays but also aspects of Health & Safety & so on & so forth.....!

Business is all about responding to & keeping pace with current trends & ideas, nothing stays the same for ever & one might as well blame all the crafters who download digi stamps (coupla clicks, pay with PayPoo, get 'em from the US in 20 seconds! lol) as lay the blame at the feet of online shopping channels, who are at the end of the day, simply responding to the demands of the customer & supplying said customer with their desired items.....!
(Except for the Cake, nobody in their right mind wants that so gawd knows what made them think anybody would....! LOL)

[craftycat]

Just had my mailing from Graphicus Guild. Yippee as far as guild members are concerned. Glenda and Adrain really have done their best for us. They have also been very open and honest in the newsletter about the situation.

[suban]

So pleased for all you guild members!

[Purplepig]

My sale order from Graphicus has arrived but one item is missing from the parcel even though it has been checked off on the invoice :( I've contacted the email addy as advised on the blog:

Quote: "Q: I’ve received my sale order and there’s a problem, how do I contact you about it? A: email sales@graphicus.co.uk with your name, order number and details of the problem. It may take a few days, but we will respond to the email and sort out the problem in full."


..... and I keep thinking it will be alright as they are a good company, but really I've got a horrible feeling that they won't be able to do anything about it given the current situation ... does anyone know? ... or do you think I've lost out? :sad::sad::sad:

[budgie]

I think they will sort it out for your PP. They have always been good on customer service.

[Purplepig]

I do hope so Budgie, I know in normal circumstances it wouldn't be a problem so fingers crossed I suppose :)

[budgie]

If they are starting a new business PP, they will hardly want to lose their customers, so I am sure they will sort it out.

[Phree]

My sale order from Graphicus has arrived but one item is missing from the parcel even though it has been checked off on the invoice :( I've contacted the email addy as advised on the blog:

Quote: "Q: I’ve received my sale order and there’s a problem, how do I contact you about it? A: email sales@graphicus.co.uk with your name, order number and details of the problem. It may take a few days, but we will respond to the email and sort out the problem in full."


..... and I keep thinking it will be alright as they are a good company, but really I've got a horrible feeling that they won't be able to do anything about it given the current situation ... does anyone know? ... or do you think I've lost out? :sad::sad::sad:

It will be sorted - the reason Glenda ended the sale on Sunday night was because the service Graphicus uses for online payments will terminate this week - and Glenda wanted to leave herself some leeway timewise to be sure she WOULD still be able to use that service to process any refunds etc. If you keep your eye on the Graphicus Blog (http://graphicus.wordpress.com/) Glenda has been posting information there as to how things are being managed.

[Purplepig]

Thanks Budgie and Phree, I'll just be patient and see what happens :)


(wish the 'thanks' button would sort itself out!)

[Purplepig]

phew! ... I was very pleased to find that a refund was issued on christmas eve for the item missing from my parcel, great stuff! :)