Hundreds of Paperlinx UK staff have been laid off after administrators from Deloitte moved in and closed down most of the UK operation. Paperlinx was the country’s biggest merchanting group. This has had a significant effect on the printing industry nationwide.
Matt Smith and Neville Kahn of Deloitte have been appointed joint administrators of a number of Paperlinx UK businesses, including Robert Horne Group, Howard Smith Paper Group, The Paper Company, and Paperlinx Services (Europe). Paperlinx UK employed around 1,200 staff and up to 693 are being made redundant.
As a result of the collapse of Paperlinx one of the largest paper mills, Tullis Russell, has also had to go into administration. The Tullis Russell brands include Advocate, Trucard, Naturalis and Mellotex. Administrators report that various Paperlinx UK businesses have revealed that the merchant owed Tullis Russell more than £1.2m.
The historic Fife paper maker was put into administration at the end of April, with 346 of its 474 staff subsequently laid off after no buyer emerged for the mill. The employee-owned firm lost £3.4m on sales of £124.6m in its most recent financial year. Chris Parr, chief executive of Tullis Russell Group – a £158.6m-turnover company before the administration, said trading conditions had been tough for Tullis Russell Papermakers but that the company’s position finally became untenable when Paperlinx went into administration on April 1, Tullis Russell’s directors were faced with no choice but to follow suit. KPMG, the administrator of Tullis Russell Papermakers, is in the process of auctioning off the firm’s brands and stock through a sealed bids process.
This is very sad news for everyone involved and it has been difficult for companies like Brightsea, who rely on paper and paper merchants as a vital part of their business. Thankfully, we have been swift in our response and have been able to secure some major contracts to ensure that our paper supply chain is robust, reliable and that there is no disruption in service. Some specialist papers and boards have sadly gone for good, but we have worked with our suppliers to find the same, if not better, quality papers which will keep your print looking as good as it always has.
If you have any questions or concerns about the paper used for your printing, please contact us and we will be happy to assist you in any way required.