Stricken packaging firm up for sale after energy costs bring it down

The firm looking after the day-to-day running of a stricken packaging firm say the firm is up for sale.

As we exclusively reported on Tuesday morning (February 13), Annesley-based Surepak has collapsed. Now, Dean Nelson and Nick Lee, business recovery and restructuring partners at PKF Smith Cooper, have been named as administrators.

Surepak’s sole director Stuart Yorston made the decision to file for administration to protect the company’s business, assets, goodwill and employees from a winding-up petition recently served by a creditor, which was due to be heard on Wednesday (February 14). Surepak will continue to trade in the short term whilst in administration, as an accelerated merger and acquisition process begins with the aim of finding a purchaser in whole or part for the company.

Nottinghamshire-based Surepak was set up in 1991, starting out as a distributor before moving into manufacturing in 1995. In 2007, the company relocated its base to a 45,000 sq ft facility in Nottingham.

The company’s financial issues began during the global energy crisis when its electricity costs increased by more than 425%. This cost hike was followed by the loss of two major contracts, which reduced the company’s turnover by £1m due to customers’ packaging requirements and a relocation abroad.

Nelson said:: “Our aim is to preserve the business and protect employees’ jobs, in addition to maximising returns for creditors. We will keep stakeholders and the press informed of any developments as matters progress. If you are interested in purchasing the company, please contact me as a matter of urgency.”