The 300 staff found out yesterday that they are not receiving their wages and are facing redundancy after the two companies called in administrators on Tuesday following “financial difficulties”.
Part of the Papermarc Group, the companies were the second largest employer in the Lancashire town. The Papermarc mill recycled paper into new cardboard, which was in turn used by the Papermarc Merton Packaging to produce cardboard packaging.
Manchester-based administrators BDO Stoy Hayward said the firms' financial difficulties had partly stemmed from a major fire at the mill earlier this year.
Spokeswoman Helen Beckett said: “Two businesses – Papermarc Mill and Papermarc Merton Packaging were placed into administration on August 10 following financial difficulties. BDO Stoy Hayward were called in at the request of the companies to advise them on the way forward.”
The spokeswoman told letsrecycle.com that around half the companies' 300 staff would most likely be made redundant, although exact figures were yet to be finalised.
Ms Beckett said: “Unfortunately it will be necessary for a significant number to be made redundant. Staff are being told in one-to-one briefings. Papermarc has not been able to pay wages in arrears, but staff will be assisted by BDO Stoy Hayward to make sure they receive their full entitlement.”
Equipment from the companies is being fully shut down today, she said, but in terms of the future, it was “still early days” for any assessment to be made.
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