Tue, 05 May 2015 | ADMINISTRATION
A packaging specialist has entered administration after struggling with a collapse in European exports, an increase in raw material costs and the financial difficulties of one of its largest customers.
Fife-based Tullis Russell Papermakers entered administration last week, with Blair Nimmo and Tony Friar from KPMG appointed as joint administrators.
Mr Nimmo commented: “This is a sad day for the employees of Tullis Russell Papermakers, who have worked hard against significant headwinds facing the global papermaking sector.”
The business has seen losses of £18.5 million mount up over the past five years after decline in demand continued. Further problems with margins prompted the company's bosses to seek a buyer for the then solvent company in autumn 2014, but nobody came forward.
Administrators have not opted to run the company as a going concern and so production has been shut down, with some 325 jobs lost straight away, while 149 will be kept on to see existing orders delivered.
Mr Nimmo added: “Unfortunately, with trading effectively ceasing, we have had no option but to reduce the size of the workforce. We will be working with government agencies to minimise the impact on employees.
“We would encourage any party with an interest in acquiring all, or parts, of the business to make contact with us as soon as possible.”
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