It has been reported that after encountering cost problems relating to energy, the ten UK subsidiaries of Arjowiggins Group have been put into administration as of late September. The Joint Administrators – Interpath Advisory – have provide an update on the progress.
Blair Nimmo, Chief Executive of Interpath Advisory and joint administrator, 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 and Chartham Mill 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.”
Alistair McAlinden, head of Interpath Advisory in Scotland and joint administrator, 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. Any customer wishing to understand stock levels available should contact us as soon as possible. In addition, we continue to work closely with PACE, the Unions and other UK and Scottish Government support bodies to ensure all employees impacted by redundancy are extended the maximum support possible.”
The administrators made 368 of the group’s 463 UK-based employees redundant immediately following their appointment. A total of 95 people have been retained to keep a limited level of activity across the two sites. The group has been encountering difficult trading conditions after the management buy-out in 2019, following the insolvency of French parent companies, Arjowiggins and Sequana.