Potential buyers scrutinise struggling packaging firm

Despite being forced to close the company’s Bridgnorth factory, Will Wright and Mark Orton from KPMG, who were appointed joint administrators, said there was still hope for the business.

It was “with great regret” ​that KPMG had subsequently been forced to announce 69 redundancies, said Wright.

“Twelve staff have been retained as we wind down the business. We have had substantial interest in the business and we are hopeful that we will be able to find a buyer who could restart the plant.”​

Cashflow difficulties​

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

Wright and Orton announced last week (July 17) they were 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.

Discovery Foils is based at leasehold premises in Bridgnorth, Shropshire, and employed 85 UK staff and one US representative.

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.

Threatened 319 staff​

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, according to KPMG.