Mon, 14 Aug 2017 | ADMINISTRATION
Distribution and logistics firm Cinram has gone into administration after failing to land a key contract with Universal Pictures.
The Aylesbury-based firm, which has previously held contracts with Sky, Paramount Pictures and UK retailer Game, was forced to lay off 81 workers and transfer 29 more in July after the US film-maker pulled out of a key contract with the distribution firm. The contract is said to have accounted for the majority of Cinram’s work at its Buckinghamshire site.
Universal Pictures instead turned to Sony DADC UK, based in Enfield, while Cinram’s bosses had worked out what Unite union bosses described as a “good redundancy package” following “intensive negotiations”.
As part of the deal 29 Cinram employees made a TUPE - Transfer of Undertakings (Protection of Employment) Regulations - transfer to Sony DADC.
A further 81 workers accepted a redundancy package negotiated by the union, with a further 118 employees still employed by the distributor, which is still searching for a buyer for its Rabans Lane, Aylsebury site.
A statement from Mercer & Hole, the firm appointed joint administrators, stated that losing the contract at the end of June had cased Cinram to “review its trading position in light of the reduced revenue”.
It continued: "The corporate restructuring team (Steve Smith, Chris Laughton and Henry Page) at Mercer & Hole have been working with the directors to prevent the closure of the site at Aylesbury and save the jobs of those employees who remained with Cinram since the end of June. It is expected that operations will continue in administration while negotiations with potential purchasers of the business continue.”
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