368 employees laid off immediately as paper company dating back to 1738 in administration

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DIRECTORS have been appointed in the subsidiaries of the Arjowiggins Group across the United Kingdom.

Blair Nimmo and Alistair McAlinden of Interpath Advisory have today been appointed joint directors of ten UK subsidiaries of the Arjowiggins group.

With origins dating back to 1738, the group is an independent paper manufacturer, producing fine and personalized papers for a variety of purposes including graphic design, packaging and labeling, and security printing.

The group owns and operates two factories in the UK, in Stoneywood, Aberdeen and Chartham, Kent.

In 2019, the group’s UK operations were established via a management buy-out following the insolvency of the French parent companies, Arjowiggins and Sequana.

READ MORE: New hopes to save historic Aberdeen paper mill

The group has faced a difficult trading environment since the negative impact of Covid-19 on trade and cash flow which led it to be loss-making, with losses exacerbated more recently by significant increases in energy costs and the price of raw materials, including pulp.

The administrators said the group administrators “worked intensively, exploring all options to safeguard the future of the business, but with a solvent solution impossible to secure, made the difficult decision to place the UK group companies under administration”.

The joint administrators dismissed 368 of the group’s 463 UK-based employees immediately after their appointment. A total of 95 members of staff have been retained by the co-administrators “to assist them in the limited activity operation of the two sites while they investigate any possibility of selling the sites and assets”.

Blair Nimmo, Managing Director of Interpath Advisory and Co-Director, said: “Arjowiggins has a long and proud history stretching back over 260 years, so this is extremely troubling news for British and Scottish manufacturing.

“Unfortunately, and in the wake of the severe challenges posed by the pandemic, significant economic headwinds that have impacted industrial manufacturing businesses across the country, including soaring energy costs and soaring input prices, proved overwhelming for the group.”

Mr Nimmo added: “The management team have asked that we pass on their sincere thanks to all employees, customers and suppliers, and to Scottish Enterprise, for their unwavering support at this very difficult time, and they wish to express their deep regret that there was unfortunately no other option available for this historic group.

Alistair McAlinden, Managing Director of Interpath Advisory and Co-Director, said: “We understand that this is an incredibly challenging time for the Group’s workforce. Our priority is to work closely with trade unions, UK and Scottish government agencies, including PACE and Job Center Plus, and relevant local authorities to provide staff with all the support and information they need, including information needed to file claims for severance pay with the Office of Severance Pay.

“Over the next few days and weeks, we will explore options to complete the sale of the sites and assets and would ask potential interested parties to contact us as a matter of urgency.”

The Group also owns and operates factories in Spain and China through its subsidiaries Guarro Casas and ArjoWiggins Quzhou. None of the operating companies is subject to insolvency proceedings.

Blair Nimmo and Alistair McAlinden of Interpath Advisory have been appointed joint directors of the following companies within the Arjowiggins group:
AW Creative Papers Group Limited
Arjowiggins Group Limited
AW Branding Limited
AW Estates Holdings Limited
AW Estates Scotland Limited
AW Estates England Limited
Arjowiggins Papers Limited
Arjowiggins Translucent Papers Limited
Arjowiggins Chartham Mill Limited
Arjowiggins Scotland Limited

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