Rick Harrison and David Costley-Wood from KPMG’s Restructuring practice have been appointed joint administrators to Total Polyfilm Limited.
Operating from two sites in Preston and Brighouse, the company manufactured polythene film for agricultural and industrial use, producing around 40,000 tonnes each year, generating circa £50 million of annual revenues.
In 2016, the company suffered a serious fire at its Preston base, after which the site required a complete rebuild. Although the reinstated site did become fully operational, the company subsequently experienced the loss of certain key customers and a declining order book, which resulted in liquidity issues.
Following the appointment of the joint administrators, production ceased at both sites. Regrettably, the majority of the firm’s 206-strong workforce have been made redundant. 17 members of staff have been retained to assist the joint administrators with the winding-down of operations whilst buyers are sought for the business and assets.
Rick Harrison, partner at KPMG and joint administrator said: “The directors of the business recently embarked on an accelerated sales process to bring further investment into the business. However, with the cash position of the company worsening rapidly, and despite a number of interested parties, a deal was unable to be concluded in the short timescales available.
“Our focus over the coming days will be to seek buyers for the business and assets of the Company and to liaise with those employees who have been made redundant, ensuring they are provided with the support and information they need to claim their statutory entitlements from the Redundancy Payments Office.
“With the support of the Company’s lender, I am, however, pleased to say that we have reached an agreement to pay all of the redundant employees’ wage arrears.”
The joint administrators are now seeking buyers for the remaining business and its assets. Interested parties should contact Sam Pacey on : +44 (0)161 838 3454.
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