Rising raw material costs tip CPC Packaging into administration
The company, which provides printing, cutting and gluing services on materials for the food packaging industry from two UK plants, said that 95 jobs had been cut mainly at its site in Kings Lynn, Norfolk.
Administrators from accountants Grant Thornton were appointed on 25 August following “a difficult period for the group”. Rising raw material costs over the previous 12 months and a fire at the Norfolk site, which had curtailed operations for some time, had combined to make the company’s financial position untenable. It is believed the packing firm’s bank had withdrawn its funding.
Sell business
A spokesman from the administrators told FoodProductionDaily.com that a decision to restart production at the plant in Bristol in the short term had been confirmed last night. In the meantime, efforts would be made to sell all or part of the packaging business.
“The administrators and their team need to quickly ascertain whether there is a possibility that some or all of the business can be sold,” said Grant Thornton’s Alastair Wardell. "The Bristol site will continue production in the short term to satisfy customer demands whilst purchasers for the business are sought. Unfortunately, some 95 of the workforce have been made redundant, primarily at the King's Lynn site and therefore this will be marketed as a turnkey operation."
The UK company is part of Groupe CPC, which has sites in Germany, Russia and France. The parent company is not believed to be affected by the UK business going into administration.
The administrators announced that parties interested in acquiring the CPC Packaging UK should contact Lucy Eaton on 0044 0117 305 7600 for further information.
