Foil packaging firm forced into administration threatening 85 jobs

A SHROPSHIRE food packaging company has entered administration threatening the jobs of 85 staff.

Discovery Foils, a leading provider of foil gravure printed packaging, was forced to call in administrators due to cashflow difficulties.

Will Wright and Mark Orton, both of KPMG, are the appointed joint administrators and they are seeking a buyer for the business, which produces packaging primarily for the confectionery industry and other customers in the dairy and foil food containers industry.  

The company is based at leasehold premises in Bridgnorth and employs 85 UK staff plus one US representative.  There have been no redundancies to date. ‪
 
‪Mr Wright said: “While the business faced cashflow difficulties, necessitating the appointment of administrators, we are hopeful that a buyer can be found for the business on a going concern basis.  We have already received interest from potential buyers.
 
‪“In terms of the operations of the business, we have closed the site at Bridgnorth – with the majority of employees sent home – whilst we liaise with the business’ key customers.”

In 2011 the jobs of more than 100 workers at the plant were saved after the £3m sale of the business to a new company.

Novelis announced before Christmas 2010 that it would be closing its Bridgnorth foil rolling and laminating plant by the end of the following April unless a buyer could be found. The decision threatened the jobs of 319 staff.

Novelis subsequently sold the packaging operation and assets to Discovery Foils. The deal saved the jobs of 105 workers, although the remaining 214 people were made redundant.

Discovery Foils financed the acquisition with support from invoice and asset based lender, Venture Finance.

The deal consisted of a comprehensive funding package approaching £3m, which included invoice discounting, plant and machinery and cashflow term loans.