PPF ‘blocked sale of failed packaging firm’

Pensions lifeboat, the Pensions Protection Fund, helped to prevent the sale of Bury-based Pulse Flexible Packaging which went into administration last week.

Sky News says that the PPF blocked the takeover of the company – an employer of 350 people – by an unnamed buyer which drew up plans to ditch its retirement scheme obligations.

Pulse called in administrators at KPMG after bids to secure new funding to stay afloat failed.
The company’s customers include Marks & Spencer and Uniliver.

The pension scheme was already a secured creditor of the company, having become a shareholder following a previous financial restructuring, which is unusual.

The PPF had supported the stance adopted by Pulse’s pension scheme, Sky said.

The PPF is now expected to take on the 700 members of the Pulse scheme, which has a buyout deficit estimated at £80m. Meanwhile, creditors are expected to recover only £4m from Pulse.

The packaging group trades from two sites, at Bury and Saffron Walden, with production having ceased until KPMG determines whether trading can resume.

A PPF spokeswoman said: “We are aware that Pulse Flexible Packaging Ltdd has gone into administration.

“As a result, we expect that the pension scheme will enter the PPF assessment period, and members can be reassured that we are there to protect them.”