200 jobs at risk as manufacturer enters administration
A manufacturer has collapsed into administration putting 200 jobs at risk.
Chris Pole and Mark Orton from KPMG have been appointed joint administrators to plastic packaging companies Gelpack Industrial and Gelpack Excelsior.
The majority of staff have been sent home from its two Hereford sites, although the administrators have retained a skeleton staff to help fulfil outstanding orders. There have been no redundancies.
Mark Orton, partner at KPMG and joint administrator said: “Gelpack is a leading name within the packaging industry, with customers including well-known names from across the food and drink, pharmaceutical and bedding sectors.
“However, both companies have recently suffered difficult trading conditions that have led to an additional funding requirement, which has prompted them to enter into administration.”
In May Gelpack revealed it had secured a £10m asset-based lending (ABL) facility through business financier, Bibby Financial Services.
The deal combined confidential invoice discounting, asset finance, stock finance and foreign exchange, and was to enable the business to unlock significant additional working capital for growth.