Trading conditions have deteriorated since the management buyout in 2019, exacerbated by the recent energy and cost crisis.
After encountering serious cost problems in the current energy crisis, the UK subsidiaries of the Arjowiggins group were placed in conservatorship on September 22, 2022. The administrators of Interpath Advisory in the UK say that 10 UK subsidiaries of the Arjowiggins group have been placed under supervision, including the group’s two factories. operates in the UK, Stoneywood in Aberdeen and Chartham in Kent.
The 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 to maintain a limited level of activity at the two sites while the possibility of selling the sites and assets is under consideration. Interpath says it is asking interested parties to contact them “as a matter of urgency”.
The group encountered difficult business conditions after the management buyout in 2019 following the insolvency of French parent companies, Arjowiggins and Sequana. The negative impact of COVID-19 on trading and cash flow has put earnings under pressure, directors report. The group has been loss-making, with those losses having been exacerbated of late by significant increases in energy costs and the price of raw materials, particularly pulp, they say.
The following companies of the Arjowiggins group have been placed under supervision: 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.
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, the administrators explain.