Friday, 22 May 2015 08:41

Tullis Russell Papermakers Limited (in administration) - Update

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2015 04 27 154107Blair Nimmo and Tony Friar were appointed as Joint Administrators of Tullis Russell Papermakers Limited on 27th April 2015.

The Joint Administrators had set a closing date for indicative offers for the business and assets of 12pm on 18th May 2015, but unfortunately no offers were received.

Prior to entering administration, Tullis Russell Papermakers had been widely marketed for sale by its parent company, Tullis Russell Group Limited.  The Group had approached 64 parties worldwide, but unfortunately this process proved to be unsuccessful. 

Following their appointment, the Joint Administrators contacted these parties to establish whether they wished to acquire the business and assets, but the parties reconfirmed their position and did not pursue any interest.

A wider sales process was initiated with the Joint Administrators contacting approximately 200 parties.   

Blair Nimmo, Joint Administrator and Head of Restructuring at KPMG in Scotland, said:

“The level of interest shown in the business and the outcome from Monday’s closing date is disappointing.  The business continues to face considerable economic challenges as a result of weakening global demand for printed materials, rising raw material costs and the strengthening of Sterling against the Euro. 

“We will now be working with the company’s remaining employees to continue to wind down operations and focus on realising the company’s assets.

“Unfortunately that will mean further redundancies but we will continue to work with government agencies to offer support to those affected.”

On appointment of the Joint Administrators’, 325 of Tullis Russell’s 474 staff were made redundant. While some work has been ongoing to meet existing customer orders, a further 21 employees have been made redundant while operations are being wound down.

About KPMG:

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a turnover of £1.9 billion in the year ended September 2014. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 162,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

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