UK based flexible packaging and cartons group Crest Packaging has gone into administrative receivership. The company has production facilities in Gillingham and Wellingborough, and employs over 500 staff.
Despite an annual turnover in excess of £50M, Crest has suffered financial losses – due to increased competition from the continent, exacerbated by the strong pound and the weak euro, and over-capacity in the marketplace, resulting in growing pressures on pricing and margins. It was also forced to close its defined benefits pension scheme last year at a cost of £2.5M to the business.
Simon Michaels and David Gilbert, of BDO Stoy Hayward, have been appointed joint administrative receivers. Simon Michaels says: “We are looking to secure an early sale of the business and will continue to trade while we seek a buyer or investor.”
More information from Simon Michaels or David Gilbert, BDO Stoy Hayward – TEL: +44 (0)20 8466 7722.