Card and packaging specialist Tullis Russell enters administration
A Fife-based producer of cards, covers and premium packaging has gone into administration after suffering a perfect storm of events including a collapse in European exports owing to the appreciation of Sterling, the insolvency of its third largest customer and a spike in the cost of raw materials.
The employee-owned firm has racked up £18.5m losses over the past five years as demand has fallen and margins have shrunk, prompting bosses to seek a buyer for the business last autumn – to no avail.
Joint administrator Blair Nimmo commented: "This is a sad day for the employees of Tullis Russell Papermakers, who have worked hard against the significant headwinds facing the global papermaking sector.”
As a result of the move all production will effectively grind to a halt with the immediate loss of 325 jobs, while a further 149 staff will be retained to honour existing orders.
However, the administrators retain hope that a buyer for all or part of the business can be found at the eleventh hour, and will work with a government taskforce to help bring this about and minimise the impact on employees.