Thu, 06 Oct 2022 | ADMINISTRATION
Administrators are continuing to explore a sale of the business and assets of the subsidiaries of paper group Arjowiggins Group UK. Ten of the group’s subsidiaries fell into administration last month, with Blair Nimmo and Alistair McAlinden of Interpath Advisory appointed to oversee the process.
The group, which can trace its history back to 1738, produces fine and custom papers for a range of uses, including graphic design, security printing, packaging and labelling. The UK business was established via a 2019 management buyout after French parent companies Arjowiggins and Sequana fell into insolvency.
However, the business has since faced a “difficult trading environment”, becoming lossmaking after the COVID-19 pandemic hit trading and cashflow. This situation has been exacerbated over recent months by significant increases in the costs of energy and raw materials, such as pulp.
Interpath Advisory were subsequently appointed as administrators to the group’s subsidiaries on September 22. The subsidiaries affected are: AW Creative Papers Group Ltd; Arjowiggins Group Ltd; AW Branding Ltd; AW Estates Holdings Ltd; AW Estates Scotland Ltd; AW Estates England Ltd; Arjowiggins Papers Ltd; Arjowiggins Translucent Papers Ltd; Arjowiggins Chartham Mill Ltd and Arjowiggins Scotland Ltd.
Joint administrator Blair Nimmo said: "We continue to explore potential interest from both trade and financial investors in the AW Group's business and assets. Both the Stoneywood Mill [Aberdeen] and Chartham Mill [Kent] sites are being given maximum exposure to identify if any party will step forward to purchase these as paper making facilities.”
"However, in the absence of any credible interest in the acquisition of either site as a manufacturing facility, the joint administrators will continue to wind down operations at each mill. We'd therefore urge any interested parties to contact the joint administrators as a matter of urgency, regardless of their interest being in the business (or part thereof) and/or specific assets."
Joint administrator Alistair McAlinden added: "While we explore potential interest in the group's business and assets, we are also liaising with key customers to establish if existing orders can be fulfilled from the group's paper stocks.”
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