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Potential buyers ponder deal for Discovery Foils

Potential buyers ponder deal for Discovery Foils

Food packaging firm Discovery Foils has reportedly attracted interest from potential buyers, despite having made 69 redundancies after entering administration earlier this month.

Discovery Foils has a reputation for being a leading provider of foil gravure printed packaging within the industry, mainly supplying for the confectionery market, as well as customers in the dairy and foil food containers sector.

Administrators from KPMG were called in earlier this month after the firm experienced cashflow problems.

Will Wright and Mark Orton were handed the responsibility of turning the company around on June 12th of this year, and were forced to close the company's Bridgnorth factory last week, resulting in the loss of 69 jobs.

Upon the closure of the Bridgnorth site, Mr Wright said: "The site at Bridgnorth has now been closed and will continue to liaise with key customers. As a result, it is with great regret that we have today made 69 staff redundant.

"Twelve staff have been retained as we wind down the business. We have had substantial interest in the business and we are hopeful that we will be able to find a buyer who could restart the plant."

The company still has leasehold premises in Bridgnorth, as well as Shropshire, and currently employees 85 members of staff in the UK.

The current saga comes two years after over 100 jobs were saved as a result of the £3 million sale of Foil to Novelis, which eventually announced that it would be closing the factory, threatening the security of up to 314 jobs.

A sale to Discovery Foils saved 105 roles, but the remaining 214 employees did not avoid redundancies.

The deal at the time was financed with support from invoice and asset based lender Venture Finance and included a comprehensive funding package of nearly £3 million.

 

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