Insolvency group Menzies Corporate Restructuring (MCR) has confirmed that the packaging firm Riverside Flexibles was sold to investors as a going concern this month. The business sale was made by a company called Different Page on 8 January, according to the administrators.

Somerset-based Riverside Flexibles went into administration in December around 18 months after a previous business failure, when administrator BDO Stoy Hayward sold it back to its directors in a pre-pack deal.

An MCR spokesperson told Packaging News that 31 jobs at Riverside, which produces flexible packaging for the food, healthcare and confectionery industries, have been saved as a result of this month's business sale.

News of the Somerset sale follows warnings of an "insolvency lag" by trade body R3, since historic trends indicate that the early recovery period after a recession is one of the most dangerous times for enterprises and individuals.

Such a lag is attributed to the time it takes for the benefits of recovery to feed through to companies, which is ignored by creditors and policy-makers who proceed to claw back funds or reduce measures aimed at helping troubled organisations. 28,000 corporate insolvencies are anticipated during 2010, and a further 27,000 next year.

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