The Scottish firm has gone into administration after losing a major customer and suffering from rising costs. Employees were told the news this morning as the company effectively ceased trading.
Based in Fife, Tullis Russell is one of Scotland’s largest employee-owned companies and has been trading for around 200 years providing coating, premium, transfer and multi-layered paper products for the UK and oversea industries.
KPMG have been appointed administrators of the company and will consider all suitable options for the business going forward, including a sale of the business.
Joint administrator, Blair Nimmo, said in a statement: “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.”
“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.”
325 staff have been made redundant while 149 employees will stay on to assist with any outstanding orders.
According to reports, directors have been trying to find a suitable buyer since late last year and KPMG are now asking for any interested buyers to come forward as soon as possible.
If you are an employee of the business, please listen to the video below which explains your rights as an employee of an insolvent business. There is a link at the end of the video to the Government website which expands further on what you need to know.
Please also take a look at our infographic which illustrates the ranking order of creditors (including employees) when a company enters administration.
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