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Papermaker to be wound down

Tullis Russell: no offers received and more staff laid off

Tullis RussellPapermaker Tullis Russell was in the process of being wound down today after the deadline for offers for the business passed without any forthcoming.

More than 200 potential buyers were contacted by joint administrators Blair Nimmo and Tony Friar of KPMG.

They set a closing date for indicative offers for the business and assets of Noon on Monday, but no offers were received. A further 21 workers were were made redundant in addition to 325 when the company called in the administrators last month. The plant had 474 employees.

Prior to entering administration, the company had been widely marketed for sale by its parent company, Tullis Russell Group which approached 64 parties worldwide.

Following their appointment, the administrators contacted these parties to establish whether they wished to acquire the business and assets, but there was no interest.  The Joint Administrators contacted a further 200 parties.

Mr Nimmo 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.”

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