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Paperlinx UK goes into administration

Paperlinx UK goes into administration

Following the rumours swirling around the Sign & Digital UK exhibition, which took place last week at the NEC, It was confirmed yesterday that PaperlinX UK has gone into administration with a loss of 693 jobs.

Although PaperlinX exhibited at the show last week, rumours as to its imminent demise were rife and last Thursday, 26th March, it was announced that trading in the shares of PaperlinX UK’s Australian owners had been suspended due to a possible banking breach with one of its European financiers.

It seems that this event precipitated the company’s decision to offload the UK Group, as despite much restructuring over the last few years, there was little prospect of a financial turnaround.

Deloitte has been appointed as the administrator of the PaperlinX UK businesses, which include the Robert Horne Group and Howard Smith Paper Group. In total, 14 sites will close, with five, including the Northampton-based headquarters, remaining open, so that trading can continue in a limited fashion in order to secure the best value available from current stock holdings. Deloitte are also attempting to find a buyer, or buyers, for the businesses.

The announcement has already caused great consternation in the UK paper supply sector, as PaperlinX was the largest UK paper merchant and its collapse could affect the UK’s ability to source enough paper to meet current levels of demand.  However, many of the signmaking products that were sold through PaperlinX are also available from other UK suppliers.

At present PaperlinX remains in talks with its European bankers, and has two weeks to sell its European business operations, before they too meet the same fate as PaperlinX UK.

For further information visit www.paperlinx.co.uk

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