Struggling Lancashire tissue company to shed 89 jobs

Lancashire tissue maker Accrol Group which suspended trading in its shares a month ago has announced 89 job losses.

The Blackburn company is talking to its banks and shareholders over its “short-term” financial requirements.

The redundancies represent a sixth of its workforce of 535, and bring to an abrupt end three years of fast growth which have culminated in the opening of a new factory in Leyland and a warehouse and distribution centre in Skelmersdale, West Lancashire.

Accrol is awaiting sentencing in January after pleading guilty to a health and safety offence which led to an employee suffering serious injury to a finger.

The Health and Safety Executive has told the company that it is seeking a fine in the range of £550,000 to £2.9m.

An Accrol spokeswoman has confirmed the job losses are expected to be concentrated at its Blackburn headquarters complex of two factories and a warehouse.

She said: “During the operational review currently being undertaken at Accrol Papers, it has been identified that a number of significant improvements should be made to the operational cost base of the business.

“As a result and with regret, the management has today announced a proposed reduction in headcount, totalling 89, across the business.”

“A consultation process is underway, which will be concluded within 45 days.”

In a separate statement to investors the company has confirmed its share dealings remained suspended, adding: “The board is confident that, while there can be no guarantee, a solution will be found to the company’s short term funding requirements.

“The directors continue to review the position and, as part of this review, the company is engaging with its major shareholders and its bank.”