Directors have been known as to Arjowiggins Group subsidiaries throughout the UK.
Blair Nemo and Alastair McAlendon from Interpath Advisory have been at present appointed joint directors of Arjowiggins Group’s ten UK subsidiaries.
With origins relationship again to 1738, the group is an unbiased paper producer, producing wonderful and customized papers for a wide range of functions together with graphic design, packaging and labelling, and safety printing.
The group owns and operates two mills within the UK in Stonywood, Aberdeen and Chartham, Kent.
In 2019, the group’s UK operations have been established by way of a administration buyout following the bankruptcies of French dad or mum firms, Arjowiggins and Sequana.
Learn extra: New hopes to save lots of historic Aberdeen paper mill
The group has confronted a troublesome buying and selling surroundings for the reason that hostile impression of Covid-19 on buying and selling and money movement, which has meant it has been operating at a loss, on account of power prices and uncooked materials costs in current instances. Considerably elevated losses, together with pulp.
The directors mentioned the group’s administrators had “labored extensively, exploring all choices to safe the way forward for the enterprise, however within the absence of a solvent answer, the troublesome choice to position the group’s UK firms into administration “What?”
The joint directors made 368 of the group’s 463 UK-based staff redundant shortly after their appointment. A complete of 95 members of workers have been retained by the joint directors to “help them within the operation of restricted exercise on the two websites whereas they discover any potential sale of the websites and property”.
Blair Nimmo, chief govt and joint administrator of Interpath Advisory, mentioned: “Arjowiggins has a protracted and proud historical past stretching again greater than 260 years, so that is extraordinarily upsetting information for UK and Scottish manufacturing.
“Sadly, and following the extreme challenges posed by the pandemic, vital financial acceleration is affecting industrial manufacturing companies up and down the nation, together with skyrocketing power prices and rising enter costs. , has confirmed to be great for the group.”
Mr Nimmo added: “The administration staff have mentioned that we want to thank all staff, prospects and suppliers, in addition to Scottish Enterprise, for his or her continued help throughout these very troublesome instances, and specific our deepest remorse. Sadly, no different possibility was out there for this historic group.
Alastair McAlendon, managing director and joint administrator of Interpath Advisory, mentioned: “We perceive that that is an extremely troublesome time for the Group’s workforce. Our precedence is to work intently with the unions, UK and Scottish Authorities businesses. , together with PACE and Job Middle Plus, in addition to related native authorities to supply workers members with all of the help and data they want, together with the required info.Redundancy claims from the Redundancy Funds Workplace.
“Over the approaching days and weeks, we’ll discover choices to realize the sale of the websites and property and urge doubtlessly events to contact us instantly.”
The group additionally owns and operates mills in Spain and China by way of its Guarro Casas and ArjoWiggins Quzhou subsidiaries. Neither the working firm is topic to insolvency proceedings.
Blair Nimmo and Alastair McAlendon from Interpath Advisory have been appointed joint directors of the next firms inside the ErgoGigans Group:
AW Artistic Papers Group Restricted
Arjowiggins Group Restricted
AW BRANDING LIMITED
AW STATES HOLDINGS LIMITED
AW STATES SCOTLAND LIMITED
AW STATES ENGLAND LIMITED
Arjowiggins Papers Restricted
Arjowiggins Translucent Papers Restricted
Arjowiggins Chartham Mill Restricted
Arjowiggins Scotland Restricted