Administrators are battling to save the business of Parkside Flexibles, which makes flexible packaging, principally for the tobacco and food industries.
The company, based in Normanton, has an annual turnover of £36 million.
Edward Klempka, Ian Sto
koe and Steve Ellis of PricewaterhouseCoopers were appointed joint administrators of Parkside Flexibles yesterday as well as of non-trading holding company Parkside International, which has no employees.
Another subsidiary, Parkside Flexibles SA, a company based in Zlotow, Poland, is not affected by the latest appointments.
Parkside workers at the Normanton factory had hoped to escape the difficulties being faced by the parent company.
In late November, PricewaterhouseCoopers was appointed administrator to another subsidiary, Parkside Performance Films, in Darton, Barnsley.
They tried to sell that business – which makes packaging, principally for the snack and food industry – as a going concern but, although more than 40 parties expressed an initial interest, no offers were received.
As a result, 190 employees were made redundant. A further 210 employees were retained to finish work in progress and to assist the administrators realise the assets of the company with no guarantee of further work.
In a statement, PricewaterhouseCoopers said that at the time the administrators were appointed to Parkside Films, the directors had hoped that Parkside International and Parkside Flexibles would be able to avoid insolvency and continue to trade normally.
Unfortunately, the pressures that developed in weeks following the insolvency of Parkside Films meant that this was not possible and culminated in the appointment of administrators to the remaining UK companies, the statement added.
Mr Klempka said: "Our immediate strategy will be to liaise with employees, customers and suppliers of Parkside Flexibles with a view to allowing trading to continue whilst we seek a buyer for its business and assets."
