Historic Fife paper maker Tullis Russell has collapsed into administration with the immediate loss of 325 jobs.
The devastating news was conveyed to employees at the Markinch-based firm – Scotland’s largest employee-owned company – this morning.
A total of 149 staff will remain working in order to complete remaining orders.
The business is one of Fife most well-known and its collapse comes just a month after a new biomass plant at the site was officially opened to provide clean energy and heat to the facility.
Joint administrators KPMG said the firm had suffered because of a rising costs, the strengthening of the pound against the euro and the loss of a major customer which was declared insolvent.See also:70 firms rejected chance to buy troubled companyThe administrators were called in by the directors of the company who concluded they had to act in the best interests of creditors.
KPMG said “all options” were now on the table to secure the future of the 200-year-old firm. They said directors had been looking for new owners for the business since the autumn.
“This is a sad day for the employees of Tullis Russell Papermakers, who have worked hard against the significant headwinds facing the global papermaking sector,” joint administrator Blair Nimmo said.Are you affected by today’s announcement? Contact the Courier on 01382 575503 or email email@example.com“Whilst we will be exploring whether a sale of all or part of the business and asset of the company can be achieved, we have had to take steps to significantly reduce the company’s overheads.
“Unfortunately, with trading effectively ceasing, we have had no option but to reduce the size of the workforce.
“We will be working with government agencies to minimise the impact on employees. We would encourage any party with an interest in acquiring all, or parts, of the business to make contact with us as soon as possible.”
Tullis Russell Papermakers Limited is a wholly owned subsidiary of Tullis Russell Group Limited.
The group’s Coating business based in Bollington, Cheshire and its Image Transfer business based in Ansan, Korea are not affected by the administration and continue to trade as normal.For more on this story, see Tuesday’s Courier.